The payment or receipt of equal amounts, at the end of a series of equal periods, for a specified amount of time is called a(n):
A)annuity due.
B)perpetuity.
C)ordinary annuity.
D)simple interest.

Question

Quizplus · Accepted Answer

The definition given perfectly matches the definition of an ordinary annuity. An annuity due is similar, but payments are made at the beginning of each period rather than at the end. A perpetuity is a series of equal payments that continues forever. Simple interest is not related to the payment or receipt of equal amounts at a series of equal periods.

The Payment or Receipt of Equal Amounts, at the End