An Annuity in Which Payments Are Made at the Beginning

question 16

Multiple Choice

An annuity in which payments are made at the beginning of each period is a(n) :

• A) Ordinary annuity
• B) Annuity due
• C) Annuity in arrears
• D) Perpetuity

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Definitions:

Sensitivity of Quantity

The responsiveness of the quantity demanded or supplied of a product to changes in its price or other factors.

Sensitivity of Price

The degree to which the price of a product or service impacts consumer demand or the quantity supplied.

Inelastic Demand

Refers to a market situation where the demand for a product does not change significantly in response to a change in price.

Elastic Demand

A market scenario where the quantity demanded of a product or service significantly changes in response to a change in price.