Ellie is considering an investment that will require her to deposit $500 per month for 6 years with the first payment occurring today.This is an example of
A)an ordinary annuity.
B)an annuity due.
C)a reverse ordinary annuity.
D)a reverse annuity due.

Question

Quizplus · Accepted Answer

An annuity due is a type of annuity where the payments are made at the beginning of each period, rather than at the end. Since Ellie's first payment is occurring today, this is an example of an annuity due.

Ellie Is Considering an Investment That Will Require Her to Deposit