Question

By definition an ordinary annuity is: A. increasing payments paid for a definitive period of time...

By definition an ordinary annuity is:

A.

increasing payments paid for a definitive period of time

B.

increasing payments paid forever

C.

equal payments paid at regular intervals over a stated time period

D.

equal payments paid at regular intervals of time on an ongoing basis

E.

unequal payments that occur at set intervals for a limited period of time

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Answer #1

C is the correct option as by definition ordinary annuity is a series of equal payment made over a fixed length of time which are generally at the end of the consecutive period.

A and E are not the right answer as these are the example of variable annuity

B and D are not the right answer as these are examples of perpetual annuity.

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