Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as Select one: A. ordinary general annuity B. perpetuity C. ordinary annuity due D. ordinary simple annuity E. this is not an annuity
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Since the interest is compounded quarterly and there are 12 months in a year, there will be 5 years * 4 quarters = 20 compounding periods. Show more…
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