If your investment pays the same amount at the beginning of each year for a period of 10 years, the cash flow stream is called:

Question

Quizplus · Accepted Answer

An annuity due is characterized by payments that occur at the beginning of each period. Since the investment in question pays the same amount at the beginning of each year, it fits the definition of an annuity due. Ordinary annuities have payments at the end of each period, perpetuities last forever, and growing perpetuities increase over time.

If Your Investment Pays the Same Amount at the Beginning