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:

Sales

Transactions involving the exchange of goods or services for money, typically recorded and analyzed in business to assess performance and growth.

Percent

A ratio or fraction expressed as a part of 100, used to denote proportionate amounts in calculations and comparisons.

Percentage Change

The proportional difference between two values, typically expressed as a percentage.

Grams

A metric unit of mass equal to one thousandth of a kilogram.