Decide whether the problem relates to an ordinary annuity or an annuity due. A trust will provide $11,000 to a county library at the beginning of each 3-month period for the next 3.5 years. If the money is worth an annual rate of 6.1%, compounded quarterly, find the amount in the trust when it begins.
A)ordinary annuity
B)annuity due

Question

Decide whether the problem relates to an ordinary annuity or an annuity due. A trust will provide $11,000 to a county library at the beginning of each 3-month period for the next 3.5 years. If the money is worth an annual rate of 6.1%, compounded quarterly, find the amount in the trust when it begins. ​
A)ordinary annuity
B)annuity due

Quizplus · Accepted Answer

Since the payments are made at the beginning of each 3-month period, it is an annuity due.

Decide Whether the Problem Relates to an Ordinary Annuity or an Annuity