An ordinary annuity is a
A)stream of unequal payments that occurs at the end of a period.
B)stream of equal payments that occurs at the end of a period.
C)stream of equal payments that occurs at the beginning of a period.
D)stream of unequal payments that occurs at the beginning of a period.

Question

Quizplus · Accepted Answer

An ordinary annuity is a stream of equal payments that occur at the end of each period. This can be contrasted with an annuity due, where payments occur at the beginning of each period.

An Ordinary Annuity Is a