Which of the following terms best describes an annuity due?
A) a perpetuity
B) unequal payments
C) payment at beginning of year
D) payment at the end of the year

Question

Quizplus · Accepted Answer

An annuity due is a series of equal payments made at the beginning of each period or year. This is different from a regular annuity, which makes payments at the end of each period or year. An annuity due can be thought of as a regular annuity shifted one period forward in time.

Which of the Following Terms Best Describes an Annuity Due