If a series of equal payments is paid regularly out of a bank account which earns a constant rate of interest, the ____ is the amount that must be in the bank at the beginning of the series to just fund all of the payments.

A) future value of an annuity due
B) present value of an annuity due
C) future value of an ordinary annuity
D) present value of an ordinary annuity
E) None of the above

Bank Account

A financial account maintained by a bank for a customer, allowing the customer to deposit and withdraw money and possibly earn interest.

Equal Payments

Installments of the same amount paid or received over a specified period for loans, mortgages, or annuities.

Present Value

Today's monetary value of a sum to be received in the future or of future cash inflows, using a specified rate of return for calculation.