Use the Ordinary Annuity Formula to Determine the Accumulated Amount

question 109

Multiple Choice

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$150 is invested quarterly for 8 years at 8% compounded quarterly

• A) $7034.07
• B) $7334.17
• C) $6634.05
• D) $12,634.18

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Definitions:

Creditors

Individuals or entities to whom a company owes money or has financial obligations, typically arising from purchase of goods or services on credit.

Accounts Payable

A liability account tracking money owed by a business to suppliers or creditors for goods and services received.

Revenue Account

An account that records sales, services, or other income earned by a business.

Asset Account

Accounts on a balance sheet that represent the resources owned by a company, which are expected to provide future economic benefits.