Use the Ordinary Annuity Formula to Determine the Accumulated Amount

question 113

Multiple Choice

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$100 invested annually for 8 years at 9% interest compounded annually

• A) $2213.96
• B) $203.12
• C) $1102.85
• D) $920.04

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Definitions:

Cash Payments

Money that is paid out by a business, often for expenses, debt, or purchases.

Investing Section

Part of a company's cash flow statement that shows cash inflows and outflows related to investments in securities, property, and equipment.

Financing Section

A part of financial statements that includes activities related to issuing debt, repayment of debt, issuing equity, and paying dividends.

Cash Outflow

Pertains to the movement of money out of a business, primarily through expenses, payments to creditors, or investments, leading to a decrease in cash balance.