For 3 years, $400 is placed in a savings account at the beginning of each 6-month period.

Question:

For 3 years, $400 is placed in a savings account at the beginning of each 6-month period. If the account pays interest at 10%, compounded semiannually, how much will be in the account at the end of the 3 years?
(a) State whether the problem relates to an ordinary or an due, and then
(b) Solve the problem.
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,...