Gale Corporation acquires a printing equipment through lease. The terms of the lease require the monthly lease payments to be made at the beginning of every month. This is an example of an annuity due.

Question

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An annuity due is a type of financial arrangement where payments are made at the beginning of every period, as opposed to the end of the period. The lease payments in this scenario are made at the beginning of every month, making it an annuity due.

Gale Corporation Acquires a Printing Equipment Through Lease