Asked by Justin Diamond on Apr 27, 2024
Verified
An annuity stream where the payments occur forever is called an annuity due
Annuity Due
An annuity for which the cash flows occur at the beginning of the period.
- Acquire knowledge about the explanations and differences between annuities due and common annuities.
Verified Answer
AW
Aidan WagnerMay 01, 2024
Final Answer :
False
Explanation :
An annuity stream where the payments occur forever is called a perpetuity, not an annuity due. An annuity due refers to an annuity where the payments are made at the beginning of each period.
Learning Objectives
- Acquire knowledge about the explanations and differences between annuities due and common annuities.