An annuity with payments that occur at the beginning of each period is known as a _____.
A)deferred annuity
B)ordinary annuity
C)immediate annuity
D)annuity due
E)discounted annuity

Question

An annuity with payments that occur at the beginning of each period is known as a _____. 
A)deferred annuity
B)ordinary annuity
C)immediate annuity
D)annuity due
E)discounted annuity

Quizplus · Accepted Answer

An annuity due is the type of annuity in which payments occur at the beginning of each period. It is different from an ordinary annuity where payments occur at the end of each period.

An Annuity with Payments That Occur at the Beginning of Each