Parks Blair Invested $5,000 at 8% Annual Interest and Left

question 203

Multiple Choice

Parks Blair invested $5,000 at 8% annual interest and left the money invested without withdrawing any of the interest for 15 years. At the end of the 15 years, Parks decided to withdraw the accumulated amount of money. Parks has found the following values in various tables related to the time value of money. $\begin{array}{lr}\text { Present value of } 1 \text { for } 15 \text { periods at } 8 \% & 0.31524 \\\text { Future value of } 1 \text { for } 15 \text { periods at } 8 \% & 3.17217 \\\text { Present value of an annuity of } 1 \text { for } 15 \text { periods at } 8 \% & 8.55948 \\\text { Future value of an annuity of } 1 \text { for } 15 \text { periods at } 8 \% & 27.15211\end{array}$ Which factor would he use to compute the amount he would withdraw, assuming that the investment earns interest compounded annually?

• A) 0.31524
• B) 3.17217
• C) 8.55948
• D) 27.15211

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