What distinguishes a General Annuity from an Annuity Due?

General Annuity

An annuity in which the payment interval does not equal the compounding interval.

Annuity Due

An annuity in which the periodic payments occur at the beginning of each payment interval.

Differentiate between General Annuity and Annuity Due and understand their financial implications.

Verified Answer

Final Answer :

General - payment made at the end of interval
Due- payments made at the beginning of interval.

Learning Objectives

Differentiate between General Annuity and Annuity Due and understand their financial implications.