At the beginning
At the end
On maturity
6 months before expiry
Answer is Right!
Answer is Wrong!
The correct answer is: A. At the beginning.
An ordinary annuity is a series of equal payments made or received at the beginning of each period. The payments are usually made for a fixed number of periods, and the interest is compounded at a fixed rate.
The other options are incorrect because:
- In an annuity due, payments are made or received at the end of each period.
- In a deferred annuity, payments do not begin until after a certain period of time.
- In a balloon annuity, the final payment is larger than the other payments.
An ordinary annuity is the most common type of annuity. It is simple to understand and calculate, and it is a good option for people who want to receive regular income for a period of time.