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
A) ordinary general annuity
B) ordinary annuity due
C) ordinary simple annuity
D) perpetuity
E) this is not an annuity

Question

Quizplus · Accepted Answer

The annuity is classified as an ordinary general annuity because the contributions are made at the end of each period, and the compounding frequency (quarterly) does not match the payment frequency (monthly).

Regular Contributions of $200 Are Made at the End of Each