Robert Invests $650 in a Savings Account at the Beginning

question 5

Multiple Choice

Robert invests $650 in a savings account at the beginning of each of the next seven years. If his opportunity cost rate is 5 percent compounded annually, how much will his investment be worth after the last annuity payment is made? Use a financial calculator to determine the amount.

• A) $5,048
• B) $5,325
• C) $5,557
• D) $6,058
• E) $6,656

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and financial reporting by organizations, which may not align with the calendar year.