Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as
A) ordinary annuities.
B) annuities due.
C) perpetuities.
D) present values.

Question

Quizplus · Accepted Answer

Annuities due are characterized by payments that occur at the beginning of each period, which is the scenario described for individuals wanting to start investing with immediate effect. Ordinary annuities, in contrast, have payments at the end of each period. Perpetuities are endless annuities, and present value is a financial concept used to determine the current worth of a future stream of payments.

Many People Who Want to Start Investing for Their Future