The difference between an ordinary annuity and an annuity due is the _____.
A) interest rate
B) timing of the payments
C) amount of the payments
D) number of periods

Question

Quizplus · Accepted Answer

The difference between an ordinary annuity and an annuity due is the timing of the payments. In an ordinary annuity, payments are made at the end of each period, while in an annuity due, payments are made at the beginning of each period. The other factors like interest rate, amount of payments, and number of periods can be the same for both types of annuities.

The Difference Between an Ordinary Annuity and an Annuity Due