What Is the Future Value of a 5-Year Ordinary Annuity

question 37

Multiple Choice

What is the future value of a 5-year ordinary annuity with annual payments of $200,evaluated at a 15% interest rate?

• A) $670.44
• B) $842.91
• C) $1,169.56
• D) $1,522.64
• E) $1,348.48

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Definitions:

Oxidizing Agent

A substance that gains electrons and thereby causes another substance to be oxidized in a chemical reaction.

Chemical Reaction

A chemical reaction is a process that leads to the transformation of one set of chemical substances to another through the breaking and forming of chemical bonds.

Evaporative Cooling

A natural or artificial process where the evaporation of a liquid into a gas absorbs heat, reducing the temperature of the surrounding environment.

Specific Heat

The amount of heat per unit mass required to raise the temperature of a substance by one degree Celsius.