The first of those ten payments arrives one year from now, so the stream is an:
AOvernight annuity
BOccasional annuity
COptional annuity
DOrdinary annuity
Answer & Solution
Correct answer: D. Ordinary annuity
1. The naming depends on when the first payment lands.
2. Here a full period passes before any money arrives.
3. That one-period lag makes it an ordinary annuity.
_Source: OpenStax Principles of Finance 2e, Chapter 8, Time Value of Money II._
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