Bonillonerisaviz
Answered

For Items 3-5. Vanessa intends to borrow money as capital for her business. To pay if off, she will
give P 4,000.00 at the end of every month for 6 years. The money is compounded by 5% Quarterly.


3. What is the compounding period?
a. Quarterly
b. Monthly
C. annually
d. daily

4. What is the payment interval?
a. Monthly
b. Quarterly
C. annually
d. daily

5. What does the problem illustrate?
a.General annuity
b. Simple annuity
c. Both A and B
d. none of the two​

Sagot :

Ineedhelp2186viz

Answer:

3.) a. quarterly

4.) a. monthly

5.) a. general annuity

Step-by-step explanation:

3. the question said the money is compounded Quarterly

4. the question said she needs to pay every month

5. A general annuity is an annuity where the payment intervals are not the same as the interest intervals. ... Suppose there are monthly payments of $500, but the interest is 6%/a, compounded semi-annually. Here the payment interval is 1 month, but the interest period is 6 months.