The Difference Between an Ordinary Annuity and an Annuity Due

Multiple Choice

The difference between an ordinary annuity and an annuity due is:

A) an ordinary annuity represents a present value and an annuity due represents a future value.
B) an ordinary annuity represents a future value and an annuity due represents a present value.
C) an ordinary annuity assumes the cash flows occur at the beginning of the period and an annuity due assumes the cash flows occur at the end of the period.
D) an ordinary annuity assumes the cash flows occur at the end of the period and an annuity due assumes the cash flows occur at the beginning of the period.