An annuity consists of payments of $400 at the beginning of each month with an annual rate of 7.1 per cent. Is this an ordinary annuity or an annuity due?
A)ordinary annuity
B)annuity due

Question

Quizplus · Accepted Answer

An annuity due is a series of equal payments or deposits made at the beginning of each period. In this case, the payments are made at the beginning of each month, making it an annuity due.

An Annuity Consists of Payments of $400 at the Beginning