What Is an Annuity Due

question 10

Multiple Choice

What is an annuity due?

• A)An annuity where the payments are made at the end of each period.
• B)An annuity where the payments are made at the beginning of each period.
• C)An annuity where if a payment is missed,it must be paid within one period or the investment is seized.
• D)An annuity where if a payment is missed,it must be paid immediately or the investment is seized.
• E)None of the above.

---

Definitions:

Discounted Price

A reduced price from the original selling price, often used to stimulate sales or clear inventory.

Tax-exempt Investor

An individual or entity that is not required to pay taxes on certain income or investments.

High Dividend Payout

A high dividend payout refers to a situation where a company distributes a significant portion of its profits to shareholders in the form of dividends, often indicating a mature company with limited reinvestment opportunities.

Prefer

To prefer means to favor or choose something or someone over other options.