Which of the following is the most appropriate timeline for the cash flows of a three-year annuity due with annual cash flows of $5,000?
A)..
B).

Question

Which of the following is the most appropriate timeline for the cash flows of a three-year annuity due with annual cash flows of $5,000? 
A).. 
B).

Quizplus · Accepted Answer

For a three-year annuity due with annual cash flows of $5,000, the cash flows occur at the beginning of each year. Therefore, the cash flows would be as follows: Year 1 - $5,000; Year 2 - $5,000; Year 3 - $5,000. The timeline that depicts this is option B.

Which of the Following Is the Most Appropriate Timeline for the Cash