Which of the following statements best describes an ordinary annuity

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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

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

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