In an ordinary annuity, payments are made or received _________ of each period.

A. At the beginning

B. At the end

C. On maturity

D. 6 months before expiry

Answer: Option B

Solution(By Examveda Team)

An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an annuity can be made as frequently as every week, in practice, ordinary annuity payments are made monthly, quarterly, semi-annually or annually.