When two or more periods precede the payment of the first cash flow in a series of cash flows, the annuity is ________.
A) an ordinary annuity
B) a future annuity
C) an annuity due
D) a deferred annuity

Question

Quizplus · Accepted Answer

A deferred annuity is one where the first cash flow payment is delayed for a period of time after the initial investment, meaning there are two or more periods before the first payment is made.

When Two or More Periods Precede the Payment of the First