Asked by Quorban Young on May 13, 2024
Verified
Which of the following phrases would not be utilized if the payments were an annuity due?
A) End-of-period payments
B) Starting immediately
C) Starting now
D) Starting today
Annuity Due
A type of annuity with payments made at the beginning of each period, rather than at the end, typically utilized in lease and loan agreements.
End-of-Period Payments
Payments made at the conclusion of a payment period, commonly used in the context of loans or leases.
Starting Immediately
Indicates that an action or process is to begin right away, without delay.
- Evaluate the differences and similarities between an annuity due and an ordinary annuity.
Verified Answer
AM
adriane mcnaryMay 14, 2024
Final Answer :
A
Explanation :
An annuity due involves payments at the beginning of each period, so "End-of-period payments" would not be used to describe it, as this phrase implies payments are made at the end of each period, which is characteristic of an ordinary annuity, not an annuity due.
Learning Objectives
- Evaluate the differences and similarities between an annuity due and an ordinary annuity.