What timeframe do conditions for an ordinary annuity typically fall into?

An ordinary annuity is defined by the timing of its cash flows, which occur at the end of each period. This characteristic is essential because it affects the present value and future value calculations associated with the annuity. By making payments at the end of the period, the interest accrued on the principal is based on the length of the entire period; thus, the cash flows do not earn interest during that period.

For context, other options do not align with this definition. While short-term versus long-term designations can apply to annuities generally, they do not specifically define an ordinary annuity. Similarly, payments made at the beginning of each period describe an annuity due, rather than an ordinary annuity, which distinguishes the timing of cash flows. The notion of a flexible schedule also does not apply because ordinary annuities follow a defined structure with cash flows consistently at the end of each period.