A House Is Rented for $3,900 Per Quarter, with Each

question 62

Multiple Choice

A house is rented for $3,900 per quarter, with each quarter's rent payable in advance. If money is worth 5%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for two years? Round your answer to the nearest cent. ​

• A)$21,416.88
• B)$148,966.10
• C)$68,141.70
• D)$44,109.26
• E)$32,599.66

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Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at a specific point in time.

Cash and Cash Equivalents

Liquid assets that can be quickly turned into exact amounts of cash with very little chance of value variation over the short term.

Treasury Bonds

Long-term government securities issued with a fixed interest rate and maturity date, typically used to finance national debt.

Brokerage Commission

The fee charged by a broker for executing transactions or providing specialized services.