What is the type of annuity where the first payment does not begin until some later date in the cash flow? A. Ordinary annuity B. Perpetuity C. Annuity due D. Deferred annuity

The correct answer is: D. Deferred annuity

An annuity is a series of equal payments made at regular intervals for a fixed period of time. An ordinary annuity is an annuity where the first payment is made at the end of the first period. A deferred annuity is an annuity where the first payment is made at some later date in the cash flow. A perpetuity is an annuity that continues forever.

Here is a table that summarizes the key differences between the three types of annuities:

| Type of annuity | When payments start | When payments end |
| — | — | — |
| Ordinary annuity | End of first period | End of last period |
| Deferred annuity | Some later date in the cash flow | End of

last period |
| Perpetuity | Never | Never |

I hope this helps! Let me know if you have any other questions.