Start learning →

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._
Practise this question with Quill — CFA Level 1 →

Keep practising Time Value of Money

Browse all Time Value of Money questions for CFA Level 1, or explore more Finance topics.

Start a Time Value of Money lesson →
Related questions