State Whether the Problem Relates to an Ordinary Annuity or an Annuity

Multiple Choice

State whether the problem relates to an ordinary annuity or an annuity due. A couple has determined that they need $400,000 to establish an annuity when they retire in 25 years. How much money should they deposit at the end of each month in an investment plan that pays an annual rate of 8%, compounded monthly, so they will have the $400,000 in 25 years? ​

A) ordinary annuity
B) annuity due