Which of the following is true of annuities?

Select one:

a. An ordinary annuity is an equal payment paid or received atthe beginning of each period.

b. An annuity due is an equal stream of cash flows is paid orreceived at the beginning of each period.

c. An annuity due is a payment paid or received at the beginningof each period that increases by an equal amount each period.

d. An ordinary annuity is an equal payment paid or received atthe end of each period that increases by an equal amount eachperiod.

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An annuity due is defined as an equal stream of cash flows that is paid or received at the begin... View the full answer