6 Questions
The present value of an annuity due is smaller than an ordinary annuity, assuming the same cash flows and interest rate.
False
An annuity due has payments made at the end of each period.
False
Rent payments are an example of an ordinary annuity.
False
The present value of an ordinary annuity is independent of the prevailing interest rate.
False
Mortgage payments are an example of an annuity due.
False
An annuity due has variable cash flows.
False
Test your knowledge of annuity due, a type of annuity where payments are made at the start of each period. Learn about the present and future values, and how they differ from ordinary annuities.
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