The difference between an ordinary annuity and an annuity due is:
A)the interest rate
B)the timing of the payments
C)the amount of the payments
D)the number of periods

Question

Quizplus · Accepted Answer

The timing of the payments is the main difference between an ordinary annuity and an annuity due. In an ordinary annuity, payments are made at the end of each period, while in an annuity due, payments are made at the beginning of each period. The interest rate, amount of payments, and number of periods can all be the same for both types of annuities.

The Difference Between an Ordinary Annuity and an Annuity Due