What is a series of equal payments to be received at the beginning of each period,for a finite period of time,called?
A)A perpetuity
B)An annuity due
C)An ordinary annuity
D)A growing annuity

Question

Quizplus · Accepted Answer

An annuity due involves equal payments made at the beginning of each period, while an ordinary annuity involves payments made at the end of each period. A perpetuity involves equal payments made indefinitely, and a growing annuity involves payments that increase over time. Therefore, the best choice for a series of equal payments to be received at the beginning of each period, for a finite period of time, is an annuity due.

What Is a Series of Equal Payments to Be Received