Lance Rice Has Decided to Invest $1,200 Quarterly for Five

question 39

Multiple Choice

Lance Rice has decided to invest $1,200 quarterly for five years in an ordinary annuity at 8%. The total cash value of the annuity at end of year 8 is (use the tables in the handbook) :

• A)$25,196.75
• B)$29,156.76
• C)$22,711.30
• D)$7,039.92
• E)None of these

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.

Budgeted Cost

An estimated cost anticipated for a specified period of time or activity.