Question

What is Annuity? What the difference between an ordinary annuity and an annuity due?

Answer 1

An annuity is a series of payments at a regular interval, such as weekly, monthly or yearly. Fixed annuities pay the same amount in each period, whereas the amounts can change in variable annuities. The payments in an ordinary annuity occur at the end of each period. In contrast, an annuity due features payments occurring at the beginning of each period.