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

question 101

Multiple Choice

State whether the problem relates to an ordinary annuity or an annuity due. A couple has determined that they need $400,000 to establish an annuity when they retire in 25 years. How much money should they deposit at the end of each month in an investment plan that pays an annual rate of 8%, compounded monthly, so they will have the $400,000 in 25 years? ​

• A)ordinary annuity
• B)annuity due

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Definitions:

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The legal dissolution of a marriage by a court or other competent body, which can have significant emotional and psychological effects on children.

Unstimulating Environment

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A state defined by major restrictions in intellectual capabilities and adaptive behavior, encompassing a wide range of daily social and practical abilities.

Moderate Intellectual Disability

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