If the periodic payments are made at the end of each period, the annuity is called:

Annuity due

No worries! We‘ve got your back. Try BYJU‘S free classes today!

An immediate annuity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Ordinary annuity

No worries! We‘ve got your back. Try BYJU‘S free classes today!

(B) or (C)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is C (B) or (C)
If the periodic payments are made at the end of each period, the annuity is called an immediate annuity or ordinary annuity.

Suggest Corrections

Similar questions

Q. If the periodic payments are all equal, the annuity is called level of.

Q. Annuity where payments are made at the end of each payment period, i.e. 1st payment is made at the end of the 1st payment interval, and so on, is known as

A $5 -$ year ordinary annuity has a present value of $$ 1, 000$ . If the interest rate is $8$ percent, the amount of each annuity payment is closest to which of the following?

250.44$
231.91$
181.62$
170.44$
184.08$

Q. Find the Amount of an ordinary annuity of

8

quarterly payments of Rs.

500

each, the rate of interest being

8 %

p.a. compounded quarterly.

Q. Annuity, where the payments start after specified no. of periods, is known as

Join BYJU'S Learning Program

If the periodic payments are made at the end of each period, the annuity is called:

The correct option is C (B) or (C)If the periodic payments are made at the end of each period, the annuity is called an immediate annuity or ordinary annuity.

The correct option is C (B) or (C)
If the periodic payments are made at the end of each period, the annuity is called an immediate annuity or ordinary annuity.