Round Your Answer to the Nearest Cent

question 9

Multiple Choice

Round your answer to the nearest cent.
-Find the 7-year future value of an ordinary annuity with a contribution of $100 per year into an account that pays 6% per year, compounded annually.

• A) $839.38
• B) $236.42
• C) $697.53
• D) $2506.05

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Definitions:

Earnings Before Interest And Taxes

An indicator of a firm's earnings, specifically excluding the costs associated with interest and income taxes.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of the asset over time.

Tax Rate

The fiscal share individuals or corporations surrender as tax.

Interest Expense

The cost incurred by an entity for borrowed funds, often reported on the income statement.