What Is the Future Value of an $800 Annuity Payment

question 72

Multiple Choice

What is the future value of an $800 annuity payment over 15 years if the interest rates are 6 percent?

• A) $1,917.25
• B) $7,002.99
• C) $12,720.00
• D) $18,620.78

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Definitions:

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Bad Debt Expense

An estimate of receivables that a company does not expect to collect, recognized as an expense in the income statement.

Open Account

A type of credit arrangement where goods and services are delivered with the understanding that payment will be made at a later date.

Interest-Bearing Note

A debt instrument in which the borrower promises to pay the lender a fixed amount of interest in addition to repaying the principal.