An annuity due is an annuity for which
A) the payments are made at the beginning of each payment period
B) the payments are made at the end of each payment period
C) the payment period is not the same as the conversion period
D) the payments are made to repay a loan
E) the payments continue forever

Question

Quizplus · Accepted Answer

An annuity due is an annuity for which the payments are made at the beginning of each payment period. This is in contrast to an ordinary annuity, where payments are made at the end of each payment period.

An Annuity Due Is an Annuity for Which