Which of the following statements best describes an ordinary annuity?

A. Equal cash flows at equal time intervals forever

B. Equal cash flows at equal time intervals for a specific time period

C. Lumpy cash flows at equal time intervals forever

D. Lumpy cash flows at equal time intervals for a specific time period

Answer: Option B

Solution(By Examveda Team)

An ordinary annuity is a series of equal payments made at the end of each period for a fixed period of time.