An annuity due is one in which _____.
A) payments or receipts occur at the end of each period
B) payments or receipts occur at the beginning of each period
C) payments or receipts occur forever
D) cash flows occur continuously

Question

Quizplus · Accepted Answer

An annuity due is a series of equal cash flows that occur at the beginning of each period, rather than at the end. This means that the first payment or receipt occurs immediately at the beginning of the first period, rather than waiting until the end of the period.

An Annuity Due Is One in Which _____