What is the primary difference between an ordinary annuity and an annuity due?
A) the interest rate
B) annuity due only relates to future values
C) ordinary annuity only relates to future values
D) the timing of the periodic payment

Question

Quizplus · Accepted Answer

The primary difference is the timing of the periodic payment; in an ordinary annuity, payments are made at the end of each period, while in an annuity due, payments are made at the beginning of each period.

What Is the Primary Difference Between an Ordinary Annuity and an Annuity