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

question 78

Multiple Choice

What is the future value of a 5-year ordinary annuity with annual payments of $200,evaluated at a 15 percent 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:

Month of Sale

Refers to the specific month in which a sale was completed or recognized, used in accounting and financial reporting.

Merchandise Purchases

The cost of goods bought for resale during a specific accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Desired Amount

The specific quantity of money or resources that an individual or organization aims to achieve or accumulate.