A series of equal payments in which the payment is made at the end of each period is a(n)________.
A)annuity due
B)ordinary annuity
C)prepaid annuity
D)beginning annuity

Question

Quizplus · Accepted Answer

An ordinary annuity is a series of equal payments made at the end of each period. An annuity due is a series of equal payments made at the beginning of each period. A prepaid annuity is an annuity in which the payments are made at the beginning. A beginning annuity is not a commonly used financial term. Therefore, the correct choice is B.

A Series of Equal Payments in Which the Payment Is