Ajax Company Purchased a Five-Year Certificate of Deposit for Their

question 53

Multiple Choice

Ajax Company purchased a five-year certificate of deposit for their building fund in the amount of $220,000. How much should the certificate of deposit be worth at the end of five years if interest is compounded at an annual rate of 9%?

• A)$857,230.
• B)$142,985.
• C)$319,000.
• D)$338,496.FV = $220,000 x 1.53862* = $338,496 *FV of $1: n=5; i=9%