Use the following 8% interest factors for questions 102 through 105.
-If $9,000 is deposited annually starting on January 1, 2014 and it earns 8%, what will the balance be on December 31, 2021?
A) $80,306
B) $86,730
C) $95,730
D) $103,388

Question

Use the following 8% interest factors for questions 102 through 105. 
-If $9,000 is deposited annually starting on January 1, 2014 and it earns 8%, what will the balance be on December 31, 2021?
A) $80,306 
B) $86,730 
C) $95,730 
D) $103,388

Quizplus · Accepted Answer

We need to use the future value of an annuity formula to calculate the balance at the end of 2021. Using the 8% interest factor for 8 years (from the table), we can calculate the future value of the annuity as:

$9,000 x 14.487 = $130,383

This gives us the total balance at the end of 2021. However, we need to subtract the amount deposited in 2021 to get the balance on December 31, 2021. The amount deposited in 2021 is simply $9,000, so:

$130,383 - $9,000 = $121,383

Therefore, the answer is D) $103,388.

Use the Following 8% Interest Factors for Questions 102 Through