Q358
Payment of security if it is made at end of each period such as beginning of year is classified as
A.
annuity due
AnswerB.
payment fixed series
C.
ordinary annuity
D.
deferred annuity
Answer: Option A
Solution
Answer: Option A
Solution:
Payment of security if it is made at end of each period such as beginning of year is classified as annuity due. An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment.