As a result of a court settlement, an accident victim is awarded $1.8 million. The attorney takes one-third of this amount, another third is used for immediate expenses, and the remaining third is used to set up an annuity. What amount will this annuity pay at the beginning of each quarter for the next 5 years if the annuity earns 7.9%, compounded quarterly?

(a) Decide whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuity

annuity due

(b) Solve the problem. (Round your answer to the nearest cent.) $