Solve the Problem. -A Sequence of Yearly Payments of $3000 Is Invested at Is

question 251

Multiple Choice

Solve the problem.
-A sequence of yearly payments of $3000 is invested at an interest rate of 2%, compounded annually. What is the total amount of the annuity after 8 years?

• A) $26,748.91
• B) $25,748.91
• C) $25,248.91
• D) $24,748.91

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Business Owner

An individual who owns and oversees the operation of a company or enterprise.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, which represents assets minus liabilities.

Asset

Resources owned by an individual or business that have value and can be used to meet debts, commitments, or legacies.