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._
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