The Difference Between an Ordinary Annuity and an Annuity Due

question 47

Multiple Choice

The difference between an ordinary annuity and an annuity due is:

• A)the interest rate
• B)the timing of the payments
• C)the amount of the payments
• D)the number of periods

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Definitions:

Provisions

Clauses in a contract or legal document outlining specific requirements, arrangements, or stipulations.

Beneficial

Something that promotes or enhances well-being, providing a positive or advantageous effect.

Oral Stop Payment

A verbal request made to a financial institution asking them to prevent the payment or processing of a check or financial instrument.

Written Stop Payment

A formal written notice given to a bank instructing it not to pay out funds under a specific check or transaction.