Problem: Carl borrowed an amount of money from Carmen. He agrees to pay the principal plus interest by paying P38, 973.76 each year for 3 years with an interest rate of 8% compounded quarterly. 7. What type of annuity is being applied in the situation above? A. general annuity B. simple annuity C. contingent annuity D. annuity due B. How many payments are made by Carl in 3 years? В. 6 A. 3 С. 12 D. 4

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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I need an answer for number 8.

Problem: Carl borrowed an amount of money from Carmen. He agrees to pay the principal plus
interest by paying P38, 973.76 each year for 3 years with an interest rate of 8%
compounded quarterly.
7. What type of annuity is being applied in the situation above?
A. general annuity
B. simple annuity
C. contingent annuity D. annuity due
8. How many payments are made by Carl in 3 years?
В. 6
А. 3
С. 12
D. 4
Transcribed Image Text:Problem: Carl borrowed an amount of money from Carmen. He agrees to pay the principal plus interest by paying P38, 973.76 each year for 3 years with an interest rate of 8% compounded quarterly. 7. What type of annuity is being applied in the situation above? A. general annuity B. simple annuity C. contingent annuity D. annuity due 8. How many payments are made by Carl in 3 years? В. 6 А. 3 С. 12 D. 4
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