What differentiates an ordinary annuity from an annuity due

What differentiates an ordinary annuity from an annuity due?

A) ordinary annuities have a finite lifespan while annuity dues have a an infinite lifespan
B) ordinary annuities make annual payments while annuity dues make semi-annual payments
C) payments on an ordinary annuity occur at period end, while annuity dues at the onset of the periods
D) both A and C
E) both A and B

Solution

Annuity payments are presumed to be occurred at each period end. Annuity due has the same characteristics are annuity except payments will be made or received at beginning of the each period.

Hence, correct option is C) payments on an ordinary annuity occur at period end, while annuity dues at the onset of the periods.