A stream of equal payments that occurs at the end of a period is called
A) An ordinary annuity
B) Compounding
C) An annuity due
D) An end annuity

Question

Quizplus · Accepted Answer

An ordinary annuity is a stream of equal payments that occurs at the end of a period. This is different from an annuity due, where the payments occur at the beginning of a period. Compounding refers to the process of earning interest on previous interest, and an end annuity is not a commonly used financial term.

A Stream of Equal Payments That Occurs at the End