A series of equal periodic payments in which the first payment is made one compounding period after the date of the contract is:
A) A deferred annuity.
B) An ordinary annuity.
C) An annuity due.
D) A delayed annuity.

Question

Quizplus · Accepted Answer

An ordinary annuity involves payments that are made at the end of each period. Since the first payment is made one period after the contract begins, it fits the definition of an ordinary annuity.

A Series of Equal Periodic Payments in Which the First