Find the amount of the ordinary annuity rounded to the nearest cent.
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Question

Find the amount of the ordinary annuity rounded to the nearest cent. 
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Quizplus · Accepted Answer

Without additional information, we cannot determine the exact amount of the annuity. However, we can use the information provided in the question to calculate an approximate amount using the formula for the present value of an ordinary annuity:
PV = PMT x [1 - (1 / (1 + r)^n)] / r
where PV is the present value, PMT is the periodic payment, r is the interest rate per period, and n is the total number of periods.

Using the given values in the question (PMT = $5,000, r = 0.06, n = 6), we get:
PV = 5000 x [1 - (1 / (1 + 0.06)^6)] / 0.06
PV = 22670.22

However, this is not the answer since present value is not the same as the amount of the annuity. To find the amount of the annuity, we need to multiply the periodic payment by the number of periods:
Amount = PMT x n
Amount = 5000 x 6
Amount = $30,000

Therefore, the best choice is A ($31,034.17), since it is the closest option to the calculated amount of $30,000. However, this is only an approximation and the actual amount of the annuity may be slightly different depending on additional information and assumptions.

Find the Amount of the Ordinary Annuity Rounded to the Nearest