If a Series of Equal Payments Is Paid Regularly Out

Multiple Choice

If a series of equal payments is paid regularly out of a bank account which earns a constant rate of interest, the ____ is the amount that must be in the bank at the beginning of the series to just fund all of the payments.

A) future value of an annuity due
B) present value of an annuity due
C) future value of an ordinary annuity
D) present value of an ordinary annuity
E) None of the above