Severson Has an Annuity Due That Pays $400 Per Year

question 108

Multiple Choice

Severson has an annuity due that pays $400 per year for 20 years.What is the value of the cash flows 20 years from today if they are placed in an account that earns 7.50%? Note: You are asked to find the FV one year after the last cash flow is realized.

• A)$9,000.00
• B)$9,675.00
• C)$16,846.35
• D)$18,621.01

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