Start learning →

A lottery hands over the first cheque today rather than in a year. That stream is an:

AAnnuity due
BAnnual bond
CAverage draw
DAdvance loan
Answer & Solution
Correct answer: A. Annuity due
1. Payments here begin immediately, with no waiting period. 2. That removes the one-year lag of the ordinary case. 3. The stream is an annuity due. _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