One standard assumption for annuities and gradients is
A)each payment occurs at the beginning of the period.
B)annuities and gradients coincide with the beginning of sequential periods.
C)annuities and gradients coincide with the end of preceding periods.
D)payment period and compounding period differ.
E)payment period and compounding period are the same.

Question

Quizplus · Accepted Answer

The standard assumption for annuities and gradients is that the payment period and the compounding period are the same. This simplifies the calculation of future and present values.

One Standard Assumption for Annuities and Gradients Is