At the age of 65 your grandfather decides to retire and use the money he saved in his RRSPs.He decided to get a fixed amount every quarter starting the day he retires.What type of payment is this?
A)an ordinary annuity
B)an annuity due
C)a reverse ordinary annuity
D)a reverse annuity due

Question

Quizplus · Accepted Answer

This is an annuity due because payments are made at the beginning of each quarter, which means the first payment is made immediately when he retires.

At the Age of 65 Your Grandfather Decides to Retire