State whether the problem relates to an ordinary annuity or an annuity due. A property owner has several rental units and wants to build more. How much of each month's rental income should be deposited at the beginning of each month in an account that earns an annual rate of 6.9%, compounded monthly, if the goal is to have $200,000 at the end of 7 years?
A)ordinary annuity
B)annuity due

Question

State whether the problem relates to an ordinary annuity or an annuity due. A property owner has several rental units and wants to build more. How much of each month's rental income should be deposited at the beginning of each month in an account that earns an annual rate of 6.9%, compounded monthly, if the goal is to have $200,000 at the end of 7 years? ​
A)ordinary annuity
B)annuity due

Quizplus · Accepted Answer

The problem requires monthly deposits at the beginning of each month, which is typical of an annuity due.

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