Asked by
alexis allred
on Oct 28, 2024
Verified
When the present value of an annuity is calculated as of two or more periods before the payment of the first rent, the annuity is a(n)
A) ordinary annuity
B) deferred ordinary annuity
C) annuity due
D) simple annuity
Deferred Ordinary Annuity
An annuity contract that begins payments at a specified future date, as opposed to immediately after the initial investment.
Present Value
The value today of a future sum of money or sequence of cash inflows, factoring in a given return rate.
- Compare and contrast ordinary annuities with annuities due.
Verified Answer
ML
Learning Objectives
- Compare and contrast ordinary annuities with annuities due.