What is ordinary annuity?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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What is ordinary annuity?

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Ordinary annuity:

An ordinary annuity is a sequence of equivalent payments made at last of successive periods through a fixed distance of time. Whereas the payments in an ordinary annuity might be made as regularly as each week, in practice, they are usually made once-a-month, three-monthly, semi-annually, or yearly.

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