A/An ________ is a series of equal end-of-the-period cash flows.
A)ordinary annuity
B)annuity due
C)perpetuity due
D)None of the above

Question

Quizplus · Accepted Answer

An ordinary annuity is a series of equal end-of-the-period cash flows. An annuity due is a series of equal beginning-of-the-period cash flows, and a perpetuity due is a never-ending series of equal beginning-of-the-period cash flows. Therefore, A) ordinary annuity is the best choice.

A/An ________ Is a Series of Equal End-Of-The-Period Cash Flows