52
QuizMultiple Choice

Topic Test

Question 52 • FT GMS AMDM B IC – 72

An annuity in which the payments occur at the end of each period is called what?

Answer
A
ordinary annuity
B
annuity due
C
future value
D
present value

Explanation

An annuity with payments made at the end of each period is called an ordinary annuity. By contrast, an annuity due has payments at the beginning of each period, while future value and present value describe ways to measure an annuity’s worth.

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