Q427
In an ordinary annuity, payments are made or received _________ of each period.
A.
At the beginning
B.
At the end
AnswerC.
On maturity
D.
6 months before expiry
Answer: Option B
Solution
Answer: Option B
Solution:
An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an annuity can be made as frequently as every week, in practice, ordinary annuity payments are made monthly, quarterly, semi-annually or annually.