If you are paid $1,000 at the end of each year for the next five years, what type of cash flow did you receive?
A)Uneven cash flow stream
B)An annuity
C)An annuity due
D)A perpetuity

Question

Quizplus · Accepted Answer

The cash flow is a series of equal payments made at equal intervals for a finite period of time, making it an annuity. The payments are equal and made at the end of each year, further confirming that it is an ordinary annuity.

If You Are Paid $1,000 at the End of Each