What Is the Different Between an Ordinary Annuity and an Annuity

question 45

Essay

What is the different between an ordinary annuity and an annuity due?
Which occurs more in practice?
Give a common example of both.

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Definitions:

Resource Maximization

It is the technique or strategy of optimally utilizing resources to achieve the highest possible output or efficiency.

Least-costly Combination

A perfect combination of resources that lowers the production cost while reaching a target output level.

Profits

Financial gains realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Profit-maximizing Combination

An optimal mix of inputs or factors of production that results in the highest possible profit for a firm, given the costs and available resources.