49. The present value of an ordinary annuity is used to compute the amount of a single deposit to be made today into an account earning interest of 6 percent per year compounded monthly. The deposit...

Extracted text: 49. The present value of an ordinary annuity is used to compute the amount of a single deposit to be made today into an account earning interest of 6 percent per year compounded monthly. The deposit must be sufficient to cover a withdrawal of an equal amount each month for 10 years. At the end of the 10 years, the balance in the account should be $0. To solve for the amount needed (the present value), the total number of conversion period (n) is conversion period is and the interest rate per A. 10 periods, 6 percent B. 10 periods, 0.5 percent C. 120 periods, 6 percent D. 120 periods, 0.5 percent