An annuity in which the payments occur at the beginning of each period is known as...
An annuity in which the payments occur at the beginning of each period is known as a(n):
Group of answer choices
Perpetuity.
Ordinary annuity.
Deferred annuity.
Annuity due.
None of these are correct.
Homework Answers
The right answer choice is “Annuity Due”
An annuity in which the payments occur at the beginning of each period is known as an Annuity Due.
-An annuity is a series of equal payments made at fixed intervals for a specified number of periods.
-An annuity due is an annuity that makes a payment at the beginning of each period for a certain time period
-An annuity due earns more interest than an ordinary annuity of equal time
-When equal payments are made at the beginning of each period for a certain period, they are treated as an annuity due
-Annuities are structured to provide fixed payment for a fixed period of time
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