The Future Value of an Annuity of $1,000 Each Quarter

question 45

Multiple Choice

The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly is

• A) $17,549
• B) $75,401
• C) $93,049
• D) $11,200

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Definitions:

Hypergeometric Distribution

A discrete probability distribution that describes the probability of k successes in n draws, without replacement, from a finite population of size N that contains exactly K successes.

Probability Distribution

A mathematical description of a random phenomenon in terms of the probabilities of its outcomes.

Electrical Outages

Interruptions in electrical power supply, often due to system failures or maintenance activities.

Counting Rule

A mathematical rule to determine the number of possible outcomes in a situation without having to list them all explicitly.