Multiple Choice Question
Annuity which payments are made at the end of each period, such payment being continued for a definite number of periods is called:
Correct Answer: A) Annuity certain
Explanation:
1. An annuity where payments are made at the beginning of each period for a definite number of periods is called an Annuity Due.
2. The payment of an annuity that begins after some years is called a Deferred Annuity.
3. The payment of an annuity that continues indefinitely is called a Perpetual Annuity.
1. An annuity where payments are made at the beginning of each period for a definite number of periods is called an Annuity Due.
2. The payment of an annuity that begins after some years is called a Deferred Annuity.
3. The payment of an annuity that continues indefinitely is called a Perpetual Annuity.