Which of the following is NOT an example of ordinary annuity cash flows?
A)Insurance payments due at the start of the period
B)Car loans due at the end of the period
C)Mortgage payments due at the end of the period
D)All of the examples above are ordinary annuity cash flows.

Question

Quizplus · Accepted Answer

Ordinary annuity cash flows are payments or receipts that occur at the end of each period. Insurance payments due at the start of the period are not considered ordinary annuity cash flows. Car loans and mortgage payments due at the end of the period are examples of ordinary annuity cash flows.

Which of the Following Is NOT an Example of Ordinary