A firm plans to make investments of $5,000 for the next 10 years, paying the amount at the end of each year. This form of payment represents a(n) _____.
A) lump-sum payment
B) uneven cash flow stream
C) annuity due
D) ordinary annuity
E) immediate annuity

Question

Quizplus · Accepted Answer

The payments being made at the end of each year for a period of 10 years represents an ordinary annuity.

A Firm Plans to Make Investments of $5,000 for the Next