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

question 22

Multiple Choice

The future value of an ordinary annuity of $1,000 each year for 10 years,deposited at 3 percent,is: (Round to the nearest whole dollar)

• A) $11,808
• B) $11,464
• C) $8,530
• D) $10,000

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Definitions:

Financial Decisions

Choices made by individuals or businesses related to investments, budgeting, savings, and spending that affect financial health and goals.

Over-Optimism

A bias in judgment or planning that causes people to overestimate the likelihood of positive outcomes.

Reasoning Errors

Mistakes in logic or judgement that can lead to incorrect conclusions or decisions.

Financial Decisions

involve the process of making choices regarding investments, budgeting, savings, and spending, affecting an individual's or entity's financial health.