In an ordinary annuity, payments or receipts occur at
Q.4 (A) (ii) In an ordinary annuity, payments or receipts occur at
A. Beginning of each period
B. End of each period
C. Mid of each period
D. Quarterly basis
Q.4 (A) (ii) In an ordinary annuity, payments or receipts occur at
A. Beginning of each period
B. End of each period
C. Mid of each period
D. Quarterly basis
Best answer
Answer: B. End of each period
Answer: (b) End of each period
In an ordinary annuity (annuity immediate) each payment is made at the end of the period; in an annuity due it is made at the beginning.
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