In: Accounting
1)What is the nature of interest? Mary is considering two investment options for a $5,000 gift she received for graduation. Both investments have 9% annual interest rates. One offers quarterly compounding and the other compounds on a semiannual basis. Which investment should she choose and why?
2)What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and an “annuity due”