If Your Investment Pays the Same Amount at the Beginning

question 17

Multiple Choice

If your investment pays the same amount at the beginning of each year for a period of 10 years, the cash flow stream is called

• A) a perpetuity.
• B) an ordinary annuity.
• C) an annuity due.
• D) none of the above.

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Definitions:

Time Constraint

A specific limit or period within which a task or project must be completed.

Inequality/Equality

Mathematical expressions that describe the relationship between two values, indicating whether they are unequal or equal respectively.

Monthly Profit

The net gain or income that a business generates in a particular month after all expenses are subtracted from revenues.

B-type Steel Sheets

A classification for steel sheets, indicating specific properties or uses, typically related to the grade or quality of the steel.