Determine if the given situations represent simple annuity or general annuity.
a. Payments are made at the end of each month for a loan that charges 1.05% interest compounded quarterly.
b. A deposit of 5 500.00 was made at the end of every three months to an account that earns 5.6% interest compounded quarterly. 3 ¡
a. Payments are made at the end of each month for a loan that charges 1.05% interest compounded quarterly.
b. A deposit of 5 500.00 was made at the end of every three months to an account that earns 5.6% interest compounded quarterly. 3 ¡
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Answer:
a. Simple annuity
b. General annuity