BUSINESS FINANCE I Dersi Time Value of Money soru detayı:
SORU:
What does ordinary annuity refer to?
CEVAP:
In addition to the ordinary annuities that we have seen, there are also annuities due. Ordinary annuity refers to annuities, which provide cash flows at the end of the period, whereas annuity due cash flows are at the beginning of the period. A common example of an ordinary annuity could be interest payments of bonds and for an annuity due could be insurance or rent payments.