A Varying Annuity Has 15 Annual Payments

question 36

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 immediately after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

• A)$24,814
• B)$72,883
• C)$78,713
• D)$51,586

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Definitions:

Inherently Biased

Describes something that has an underlying tendency or prejudice in favor of or against one thing, person, or group compared with another, often in a way considered to be unfair.

Objective

A specific, measurable, achievable, relevant, and time-bound goal that guides decisions and actions in various contexts, including business and personal settings.

Specific Time Frame

A defined period during which particular tasks are to be completed or objectives are to be achieved, crucial for planning and schedule management.

Goal

A desired result or outcome that an individual or organization aims to achieve within a specific timeframe.