________ annuities involve depositing money at the end of the period and allowing it to grow.
A)Discount
B)Compound
C)Annuity due
D)Both B and C

Question

Quizplus · Accepted Answer

Compound annuities involve depositing money at the end of the period and allowing it to grow through the power of compounding interest. Option A, discount annuities, involves investing a lump sum at the beginning of the period and receiving payments at the end, while option C, annuity due, involves making payments at the beginning of each period. Option D, both compound and annuity due, includes two types of annuities that are not mutually exclusive, so it is not a clear answer.

________ Annuities Involve Depositing Money at the End of the Period