Question

When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a fixed amount of money paid or received at the end of every period (i.e. a series of equal lump sums)?

A. Future value
B. Present value
C. Ordinary annuity
D. Annuity due

Answer 1

C. Ordinary annuity

Step-by-step explanation:

The ordinary annuity is the sequence amount of an equivalent lump sum containing a fixed amount of money to be paid or earned at the end of each term. Periods here can be in weekly, monthly, semi-annual or semi-annual, or annual. The number should be the present value

Thus, the appropriate choice is c.

Therefore, all the remaining options are wrong