Find the Amount of an Annuity If $200 Per Month

question 21

Multiple Choice

Find the amount of an annuity if $200 per month is paid into it for a period of 17 years, earning interest at the rate of 7% per year compounded continuously. Round you answer to the nearest dollar. ​

• A) $284,751
• B) $130,510
• C) $78,414
• D) $84,009
• E) $144,734

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Definitions:

Negotiable

indicates that a financial instrument or document can be transferred from one party to another, often by endorsement or delivery, altering the holder in due course.

Maker

The entity or individual who creates or produces an item or is the principal party to a note or check.

Form of Document

refers to the specific layout, structure, and requirements that a document must meet for legal or official purposes.

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another in a way that the rights accompanying the instrument are also transferred.