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1. What is the number, n, of periods? To prepare for their children’s future college expenses,...

1. What is the number, n, of periods? To prepare for their children’s future college expenses, a couple decides to deposit $100 at the end of every month into an account that pays 8% interest compounded monthly. How much will be accumulated after 18 years?

a.

n = 6
b.

n = 12
c.

n = 18
d.

n = 216

2. Ordinary Annuity or Annuity Due? A newly married couple decides to save $1500 per month for the purchase of a home. They make regular deposits at the end of each month into an account that pays 6.5% interest compounded monthly. If they maintain this plan for 5 years, how much money will be in this account?

a. ordinary annuity

b. annuity due

c. neither
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