Dorothy Strawn has plans to invest $30,000 over five years in an annuity at 6 , and she wants the best plan Annuity 1 is a monthly ordinary annuity of $500 compounded monthly Annuity 2 is a semiannual ordinary annuity of $3,000 compounded semiannually Annuity 3 is a quarterly annuity due of $1,500 ...

Annuity 4 with the larger annuity due payment yields the greatest future value ...

Dorothy Strawn has plans to invest $30,000 over five years in an annuity at 6%, and she

Question:

Dorothy Strawn has plans to invest $30,000 over five years in an at 6%, and she wants the best plan. 1 is a monthly ordinary of $500 compounded monthly. 2 is a semiannual ordinary of $3,000 compounded semiannually. 3 is a quarterly due of $1,500 compounded quarterly. 4 is a yearly due of $6,000 compounded annually. What yields the greatest future value? See Example 8. Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...