When the conversion period is different from the payment period, an annuity is called:
A) ordinary
B) certain
C) general
D) deferred
E) simple

Question

Quizplus · Accepted Answer

When the conversion period (the frequency of interest compounding) differs from the payment period (the frequency of payment contributions or withdrawals), the annuity is referred to as a general annuity. This contrasts with ordinary annuities where the payment and conversion periods match.

When the Conversion Period Is Different from the Payment Period