Q298
Which of the following statements best describes an ordinary annuity?
A.
Equal cash flows at equal time intervals forever
B.
Equal cash flows at equal time intervals for a specific time period
AnswerC.
Lumpy cash flows at equal time intervals forever
D.
Lumpy cash flows at equal time intervals for a specific time period
Answer: Option B
Solution
Answer: Option B
Solution:
An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.