Round Your Answer to the Nearest Cent

question 173

Multiple Choice

Round your answer to the nearest cent.
-Find the 6-year future value of an ordinary annuity with a contribution of $1800 every six months into an account that pays 3.8% per year, compounded semi-annually.

• A) $53,476.45
• B) $83,378.11
• C) $24,006.46
• D) $71,374.88

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Definitions:

Independent Variable

The variable causing a change in some other (dependent) variable.

Dependent Variable

A variable that changes as a consequence of a change in some other (independent) variable; the “effect” or outcome.

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or earned, representing the cost of borrowing money or the reward for saving.

Investment

The act of allocating resources, usually financial, into something with the expectation of generating income or profit.