BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Beginning of the period
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Middle of the period
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First 3 days of the period
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End of the period
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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.
Detailed explanation-2: -If the periodic payments are made at the end of each period, the annuity is called an immediate annuity or ordinary annuity.
Detailed explanation-3: -If the payments are made at the end of the time periods, so that interest is accumulated before the payment, the annuity is called an annuity-immediate, or ordinary annuity.
Detailed explanation-4: -A life annuity will continue to make payments until the annuitant’s death. A fixed-term annuity will end when the term is up, with the remaining balance paid out in a lump sum or rolled over into another investment.