A Varying Annuity Has 15 Annual Payments

question 43

Multiple Choice

A varying annuity has 15 annual payments.The first payment is $2000,and each succeeding payment increases by 5%.What is the accumulated value of these payments 5 years after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

• A)$63,412
• B)$101,989
• C)$107,089
• D)$112,443

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Definitions:

Pomegranates

A fruit with a tough outer layer that contains sweet-tart arils, which are edible seeds surrounded by juicy pulp.

Bananas

A type of elongated, edible fruit produced by various kinds of large herbaceous flowering plants in the genus Musa.

Principle Of Diminishing Marginal Utility

The proposition that each successive unit of a good or service consumed adds less to total utility than did the previous unit.

Marginal Utility

The augmented utility or satisfaction a consumer experiences when they consume one more unit of a product or service.