BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
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A type of annuity in which the payments are made at the end of each payment interval.
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Simple Annuity
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General Annuity
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Ordinary Annuity
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Annuity Certain
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Explanation:
Detailed explanation-1: -If the periodic payments are made at the end of each period, the annuity is called an immediate annuity or ordinary annuity.
Detailed explanation-2: -An ordinary annuity is a series of regular payments made at the end of each period, such as monthly or quarterly.
Detailed explanation-3: -Annuities due are a type of annuity where payments are made at the beginning of each payment period. For example, when paying rent, the rent payment (PMT) is due at the beginning of each month.
Detailed explanation-4: -Annuity whose payments are made at the end of each period, such payment being continued for a definite number of periods is known as annuity certain.
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