Joe Sullivan Invests $9,000 at the End of Each Year

question 17

Multiple Choice

Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8% annually. The final value of Joe's investment at the end of the 20th year on this ordinary annuity is

• A) $411,588.00
• B) $88,362.90
• C) $411,857.68
• D) $88,632.90
• E) None of these

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Definitions:

Price

The total financial stipend expected, mandated, or handed over in payment for something.

Profit

The financial gain achieved when the revenue earned from selling goods or services exceeds the costs associated with their production and distribution.

Production Function

An equation or formula that specifies the output a firm can produce with varying combinations of inputs or factors of production.

Proportions

The relative relationship in size, quantity, or degree between two or more things.