Ordinary annuity
Perpetuity
Annuity due
Deferred annuity
Answer is Right!
Answer is Wrong!
The correct answer is B. Perpetuity.
An annuity is a series of equal payments made at regular intervals for a fixed or indefinite period of time. A perpetuity is a special type of annuity that does not have a fixed time span but continues indefinitely or forever.
An ordinary annuity is an annuity in which the payments are made at the end of each period. A deferred annuity is an annuity in which the payments do not begin until after a certain period of time.
Here is a table that summarizes the key differences between the three types of annuities:
| Type of Annuity | Payment Timing | Start Date |