PRC-2 · Chapter 2 · Question 36 of 45
An annuity where the payments are made at the *beginning* of each period is called a/an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Annuity Due
Explanation
Most standard annuities (Ordinary) have payments at the end of the period. Annuity Due payments occur at the start (common for rent or insurance).
More Coordinate System and Its Application MCQs
- Q38How long will it take for a sum to double itself at 10% Simple Interest per annum?
- Q39The process of systematically paying off a debt (like a mortgage) with regular payments over time is called:
- Q40If you invest Rs. 1,000 at 5% interest compounded annually for 2 years, what is the Future Value (FV)?
- Q41What is 'Depreciation' in a financial context?
- Q42An investment produces Rs. 5,000 every year forever. This type of cash flow is called a/an: