BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An ordinary annuity is a series of regular payments made at the end of each period, such as monthly or quarterly. In an annuity due, by contrast, payments are made at the beginning of each period. Consistent quarterly stock dividends are one example of an ordinary annuity; monthly rent is an example of an annuity due.

Detailed explanation-2: -If, for example, a vehicle is purchased with monthly payments on a four-year loan then the term of the loan is 4 years and the payment interval is monthly. In some cases, as with salaries or a senior’s pension, the payments are made at the end of a payment interval. This is referred to as an ordinary annuity.

Detailed explanation-3: -A fixed-period annuity, also known as a term-certain annuity, pays out over a specific period of time. This type of annuity spreads out payments over a fixed period-typically 20 or 30 years.

Detailed explanation-4: -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.