## Related questions with answers

Question

**(a) state whether the problem relates to an ordinary annuity or an annuity due and then**
**(b) solve the problem.**

Parents agree to invest $\$ 500$ (at $10 \%$ compounded semiannually) for their son on the December $31$ or June $30$ following each semester that he makes the dean's list during his $4$ years in college. If he makes the dean's list in each of the $8$ semesters, how much money will his parents have to give him when he graduates?

Solutions

VerifiedSolution A

Solution B

Answered 1 year ago

Step 1

1 of 11In this exercise, the task is to determine whether the example describes the ordinary annuity or annuity due and then to calculate what is needed, considering the given input data.

Answered 2 years ago

Step 1

1 of 4**(a)**
Given that the parents will invest at end of each semester, we can infer that the problem is ordinary annuity.

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