An Annuity Is Considered

question 118

Multiple Choice

An annuity is considered:

• A) an ordinary annuity if the payments occur at the beginning of each period.
• B) an annuity due if the payments occur at the end of each period.
• C) an ordinary annuity if the payments occur at the end of each period
• D) an annuity due if the payments occur at the beginning of each period.
• E) Both (c) and (d)

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Definitions:

Cash Dividend Payment

A cash dividend payment is a distribution of profits by a corporation to its shareholders in the form of cash.

Outstanding Stock

The total shares of stock that are owned by investors, including shares held by institutional investors and company insiders.

Regular Cash Dividend

A fixed amount paid to shareholders out of a company's profits on a regular schedule.