Which of the following types of annuity best describes the mortgage or rent that you have to pay at the beginning of each month?
A) Annuity due
B) Ordinary annuity
C) Deferred annuity
D) Annuity in arrears
E) Immediate annuity

Question

Quizplus · Accepted Answer

Annuity due describes payments made at the beginning of each period, while ordinary annuity describes payments made at the end of each period. Since mortgage or rent payments are typically due at the beginning of each month, they are best described as an annuity due.

Which of the Following Types of Annuity Best Describes the Mortgage