Jacob Sawyer will deposit $3,000 into a special account each year beginning December 31, 2016, with the last deposit being made on December 31, 2019. Jacob wants to know how much will be in his account on December 31, 2019, immediately after the final deposit, if the account earns 10% compounded annually. To solve the problem, Jacob must find the future value of
A) a single sum.
B) a deferred annuity.
C) an ordinary annuity.
D) an annuity due.

Question

Quizplus · Accepted Answer

Jacob is making deposits at the end of each year, which is characteristic of an ordinary annuity where payments are made at the end of each period.

Jacob Sawyer Will Deposit $3,000 into a Special Account Each