Solved

If You Invest $1,000 at the End of Each of the Next

Question 89

Multiple Choice

If you invest $1,000 at the end of each of the next 5 years and the investment earns 4% interest, what is the value of the investment at the end of 5 years?
FutureValue of an  Annuity of $14%5%6%7%8%9%11.0001.0001.0001.0001.0001.00022.0402.0502.0602.0702.0802.09033.1293.1533.1843.2153.2463.27844.2464.3104.3754.4404.5064.57355.4165.5265.6375.7515.8675.98566.636.806.977.1537.3367.52377.8988.1428.3948.6548.9239.20089.2149.5499.89710.2610.6411.03910.5811.0311.4911.9812.4913.021012.0112.5813.1913.8214.4915.19\begin{array}{|r|l|l|l|l|l|l|}\hline \text {Future}\\\text {Value of an }\\\text { Annuity of }\\\$ 1\\ \hline &4\%&5\%&6\%&7\%&8\%&9\%\\\hline1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\\hline 2& 2.040 & 2.050 & 2.060 & 2.070 & 2.080 & 2.090 \\\hline 3 & 3.129 & 3.153 & 3.184 & 3.215 & 3.246 & 3.278 \\\hline 4 & 4.246 & 4.310 & 4.375 & 4.440 & 4.506 & 4.573 \\\hline 5 & 5.416 & 5.526 & 5.637 & 5.751 & 5.867 & 5.985 \\\hline 6 & 6.63 & 6.80 & 6.97 & 7.153 & 7.336 & 7.523 \\\hline 7 & 7.898 & 8.142 & 8.394 & 8.654 & 8.923 & 9.200 \\\hline 8 & 9.214 & 9.549 & 9.897 & 10.26 & 10.64 & 11.03 \\\hline 9 & 10.58 & 11.03 & 11.49 & 11.98 & 12.49 & 13.02 \\\hline 10 & 12.01 & 12.58 & 13.19 & 13.82 & 14.49 & 15.19 \\\hline\end{array}


A) $5,416
B) $4,310
C) $5,000
D) $5,200

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents