Asked by Latroy Mayfield on Jul 01, 2024
Verified
With an annuity due, payments:
A) occur at the end of each period.
B) occur at the beginning of each period.
C) are due at the end of each period.
D) occur at the end of each loan.
Annuity Due
A series of equal payments made at the beginning of consecutive periods over a fixed length of time.
Payments
Payments refer to the transfer of money from one party to another in exchange for goods, services, or to fulfill a legal obligation.
- Delve into the principles and distinct characteristics of annuities, perpetuities, and amortized financial liabilities.
- Differentiate between annuity due and ordinary annuity.
Verified Answer
AN
Akshit Narang8 days ago
Final Answer :
B
Explanation :
An annuity due is a series of equal payments made at the beginning of each period. Therefore, the correct choice is B- payments occur at the beginning of each period.
Learning Objectives
- Delve into the principles and distinct characteristics of annuities, perpetuities, and amortized financial liabilities.
- Differentiate between annuity due and ordinary annuity.