An apartment lease where the payments are due at the beginning of each month would be an example of a(n):
A) perpetuity.
B) annuity due.
C) ordinary annuity.
D) deferred annuity.

Question

Quizplus · Accepted Answer

An annuity due is characterized by payments that are made at the beginning of each period, which matches the description of the apartment lease payments being due at the beginning of each month.

An Apartment Lease Where the Payments Are Due at the Beginning