Explain what is meant by an ordinary annuity.
Understand the Problem
The question is asking for an explanation of the concept of an ordinary annuity, which typically includes details about its characteristics, how it functions, and its financial implications.
Answer
An annuity in which the cash flows, or payments, occur at the end of the period.
The final answer is an annuity in which the cash flows, or payments, occur at the end of the period.
Answer for screen readers
The final answer is an annuity in which the cash flows, or payments, occur at the end of the period.
More Information
An ordinary annuity is contrasted with an annuity due, in which payments are made at the beginning of each period.
Sources
- What Are Ordinary Annuities, and How Do They Work? - Investopedia - investopedia.com
- What Is an Ordinary Annuity? - SmartAsset - smartasset.com
- Ordinary annuity definition - AccountingTools - accountingtools.com
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