When the payment for an annuity is made at the end of each period, such an annuity is referred to as a(n) _____.
A)ordinary annuity
B)annuity due
C)immediate annuity
D)terminal annuity
E)discounted annuity

Question

When the payment for an annuity is made at the end of each period, such an annuity is referred to as a(n) _____. 
A)ordinary annuity
B)annuity due
C)immediate annuity
D)terminal annuity
E)discounted annuity

Quizplus · Accepted Answer

An ordinary annuity is a series of equal payments made at the end of each period. This is the most common type of annuity and is often used to describe regular payments such as rent or car payments.

When the Payment for an Annuity Is Made at the End