Final answer:
Maria receiving $4,500 quarterly for 6 years and 9 months at an annual interest rate of 4.22% compounded quarterly is classified as a future value ordinary annuity. Payments at the end of each period characterize an ordinary annuity, and the future value is calculated accounting for the periodic payment, interest rate per period, and total number of periods.
Step-by-step explanation:
The annuity described where Maria receives $4,500 at the end of every quarter for 6 years and 9 months with an annual interest rate of 4.22% compounded quarterly is a future value ordinary annuity. An ordinary annuity is one in which payments are received at the end of each period. To calculate the future value of this annuity, the formula used involves the regular payment amount, the periodic interest rate, and the number of periods. Given that the payments are quarterly and the interest rate is compounded per quarter, the total number of periods would be the number of years multiplied by 4, plus additional periods for the months. The interest rate per period is the annual rate divided by 4.
First, convert the years and months into quarters: 6 years * 4 quarters/year = 24 quarters, plus 9 months/3 months per quarter = 3 quarters, for a total of 27 quarters. Then, the interest rate per quarter is 4.22% per year / 4 quarters = 1.055% per quarter. The future value of the ordinary annuity can be calculated using the future value annuity formula which accounts for compound interest. However, without the specific calculation here, the important thing to note is that the interest rate and the frequency of payment (quarterly in this case) are key factors in determining the annuity value.