Difference between annuity due and ordinary annuity

Assignment Help Risk Management

Reference no: EM131538324

Part a

An invoice received from Royal Exporters totaled $638.20, was dated October 10, and offered terms of 1/11 ROG. The shipment was received November 27. If the invoice was paid on December 12, find the net amount due. Round to the nearest cent.

Part b

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

I. when the money is paid into the annuity

II. the way the money is paid out of the annuity

III. with an annuity due, payment is made at the beginning of the period

Choose the correct option

?II only

?III only

?both I and III

?I only

Reference no: EM131538324

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