Question

An ordinary annuity can be defined as:

A) A series of unequal payments at the beginning of each period.
B) A series of equal payments at the end of each period.
C) A lump sum.
D) Intermittent payments for ordinary expenses.

Answer 1

An ordinary annuity can be defined as a series of equal payments at the end of each period.

Step-by-step explanation:

An ordinary annuity can be defined as a series of equal payments at the end of each period. This means that the same amount of money is paid at the end of each period, such as each month or each year. For example, if someone decides to save $100 at the end of each month, that would be considered an ordinary annuity.