Travis Tucker invests $10,655.04 now for a series of $1,500 annual returns beginning one year from now. Travis will earn 10% on the initial investment. How many annual payments will Travis receive?
A) 10
B) 12
C) 13
D) 15

Question

Quizplus · Accepted Answer

To find the number of payments, we use the formula for the present value of an annuity: PV = PMT * [(1 - (1 + r)^-n) / r]. Here, PV = $10,655.04, PMT = $1,500, and r = 0.10. Solving for n gives approximately 13 payments.

Travis Tucker Invests $10,655