Question

Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as:_______.
a. ordinary annuities.
b. annuities due.
c. perpetuities.
d. present values.

Answer 1

Answer:

b. annuities due

Explanation:

Annuities due -

It refers to the amount which need to be paid at the regular interval of time , just before the beginning of the new phase , is referred to as annuities due .

The most common example of annuities due is rent , which need to be paid after every month in the starting .

Hence , from the given information of the question ,

The correct option is annuities due.