Billy Pierce Invests $8,000 at the End of Each Year

question 83

Multiple Choice

Billy Pierce invests $8,000 at the end of each year for 5 years at 6%. What is the future value of the investment?
$\begin{array}{|r|r|r|r|r|r|r|}\hline\text { Future } \\\text { Value of an} \\\text { Annuity of }\\\$ 1\\\hline & 4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% \\\hline 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\\hline 2 & 2.040 & 2.050 & 2.060 & 2.070 & 2.080 & 2.090 \\ \hline 3 & 3.122 & 3.153 & 3.184 & 3.215 & 3.246 & 3.278 \\\hline 4 & 4.246 & 4.310 & 4.379 & 4.440 & 4.506 & 4.573 \\\hline 5 & 5.416 & 5.526 & 5.637 & 5.751 & 5.867 & 5.985 \\\hline 6 & 6.631 & 6.802 & 6.976 & 7.153 & 7.336 & 7.523 \\\hline 7 & 7.898 & 8.142 & 8.394 & 8.654 & 8.929 & 9.200 \\\hline 8 & 9.214 & 9.549 & 9.897 & 10.26 & 10.64 & 11.03 \\\hline 9 & 10.58 & 11.03 & 11.49 & 11.98 & 12.49 & 13.02 \\\hline 10 & 12.01 & 12.58 & 13.18 & 13.82 & 14.49 & 15.19 \\\hline\end{array}$

• A) $45,096
• B) $51,008
• C) $49,599
• D) $47,523

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Definitions:

Cardiac Output

The volume of blood pumped by the heart per minute, an important measure of heart function and efficiency.

Stroke Volume

The amount of blood pumped by the left ventricle of the heart in one contraction.

Peripheral Resistance

The resistance to the flow of blood in the peripheral arterial vessels, which largely determines blood pressure levels.

Vasoconstriction

The narrowing of blood vessels, decreasing blood flow.