A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as:
A) an ordinary annuity
B) a deferred annuity
C) an annuity due
D) an extraordinary annuity

Question

Quizplus · Accepted Answer

A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as an annuity due. An ordinary annuity refers to payments or receipts at the end of each time period, while a deferred annuity refers to payments or receipts that are delayed until a future date. An extraordinary annuity is not a commonly used term in finance.

A Series of Equal Payments or Receipts That Occur at the Beginning