Assume you are to receive a 10-year annuity with annual payments of $1000. The first payment
will be received at the end of Year 1, and the last payment will be received at the end of Year 10.
You will invest each payment in an account that pays 9 percent compounded annually. Although
the annuity payments stop at the end of year 10, you will not withdraw any money from the
account until 25 years from today, and the account will continue to earn 9% for the entire 25-year
period. What will be the value in your account at the end of Year 25 (rounded to the nearest
dollar)?
A) $48,359 B) $55,340 C) $35,967 D) $48,000
B
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VB Specialty Foods, a grocery merchandiser, purchased goods and paid transportation to bring them to the company warehouse. The transportation cost is known as ________
A) freight out B) selling expense C) freight in D) cost of goods sold
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