Johnson has an annuity due that pays $600 per year for 15 years. What is the value of the cash flows 15 years from today if they are placed in an account that earns 7.50%? Note: You are asked to find the FV one year after the last cash flow is realized
A) $9,000.00
B) $9,675.00
C) $15,671.02
D) $16,846.35
Answer: D
Explanation: D) FV = PMT × × (1 + r)n = $600 × × (1.075)1 = $16,846.35.
MODE = BEGIN
INPUT 15 7.5 0 -600 ?
KEY N I/Y PV PMT FV
CPT 16,846.35
Business
You might also like to view...
In market basket analysis, lift is confidence divided by support
Indicate whether the statement is true or false
Business
Which of the following is the best description of a vision statement?
A) a statement of the firm's measurable outcomes B) a statement of what the firm will be in the future C) a declaration of what the firm stands for D) a statement of the firm's values and purposes
Business