Annuities where the payments occur at the end of each time period are called _____,whereas _____ refer to annuity streams with payments occurring at the beginning of each time period.

Question

Quizplus · Accepted Answer

Annuities where payments occur at the end of each time period are called ordinary annuities, whereas annuities due refer to annuity streams with payments occurring at the beginning of each time period. Therefore, the best choice is B. Choices A, C, D, and E either have incorrect terms or use terms that are not commonly used in finance.

Annuities Where the Payments Occur at the End of Each