All of the following are conditions for an ordinary annuity except
A) periodic cash flows must be equal in amount
B) the time periods between the cash flows are the same length
C) the interest rate is constant for each time period
D) interest is compounded in the middle of each time period

Question

Quizplus · Accepted Answer

For an ordinary annuity, interest is not compounded in the middle of each time period; instead, payments are made at the end of each period.

All of the Following Are Conditions for an Ordinary Annuity