Question:

# 1a) An annuity provides for 20 monthly payments of $1000, with first payment due three months from now. If the annuity accrues interest at 10%/year compounded quarterly, what type of annuity is it?

#1b) An annuity provides for 20 monthly payments of $1000, with first payment due immediately. If the annuity accrues interest at 10%/year compounded monthly, what type of annuity is it?

Answer: (choose the correct one for each)

a.A (level) simple ordinary annuity

b.A (level) simple annuity due

c.A (level) simple deferred annuity

d.A (level) general ordinary annuity

e.A (level) general annuity due

f.A (level) general deferred annuity