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23 September, 13:11

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

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Answers (1)
  1. 23 September, 13:14
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    C. Ordinary annuity

    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
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