Find the Amount of an Ordinary Annuity for 6 Years

question 182

Multiple Choice

Find the amount of an ordinary annuity for 6 years of quarterly payments of $1,800 that earn interest at 4% per year compounded quarterly. ​

• A) $11,073.63
• B) $70,348.69
• C) $48,552.24
• D) $2,285.52

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Withdrawals Account

An account used to record the amounts withdrawn by the owner from the business for personal use.

Income Summary

An account used during the closing process that summarizes the revenues and expenses of an accounting period to calculate the net income or loss.

Temporary Account

A temporary account is an account that is closed at the end of each accounting period, with its balance transferred to a permanent account.