3
QuizMultiple Choice
Annuities
Question 3 • 26-27 Ignite Financial Literacy Personal Finance - EL3403
The following table list two investment plans, A and B. Given this information, determine which investment is an ordinary annuity and the future value of the ordinary annuity after one year, given that both investments, A and B, compound interest monthly at the rate of 3.5%. Round to the nearest cent.
Answer
A
Investment A is an ordinary annuity with $3,918.03 in the account after 1 year.B
Investment B is an ordinary annuity with $3,918.03 in the account after 1 year.C
Investment A is an ordinary annuity with $3,906.64 in the account after 1 year.D
Investment B is an ordinary annuity with $3,906.64 in the account after 1 year