Use the Ordinary Annuity Formula to Determine the Accumulated Amount

question 90

Multiple Choice

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$1000 invested annually for 12 years at 5% interest compounded annually

• A) $3420.68
• B) $35,917.13
• C) $15,917.13
• D) $14,206.79

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Definitions:

Non-obvious Solution

A solution that is not immediately apparent or straightforward, often requiring creative thinking, innovation, or a deeper analysis of the problem.

Conformity Increased

A phenomenon where individuals adjust their behavior or beliefs towards group norms as the pressure from the group increases.

Dynamic Social Impact

A theory suggesting that individuals in a group influence each other and over time, the group becomes more homogenous in their beliefs and behaviors.

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Pertaining to entities, individuals, or systems that are spread out across different geographic locations.