In three years you will begin receiving an annual payment of $600 that will be made for two years.If the annual interest rate is 12%,what will be the balance in your account at the end of the fourth year?
A) $2,025
B) $1,344
C) $1,272
D) $1,200
E) $1,260

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc16_f6c9_a768_2f12c5f15a8b_TB2902_11 FV = 600 × 11ea7fdb_fc16_f6ca_a768_65493259b01b_TB2902_11 = $1,272
Using a financial calculator:
N = 2, I/Y = 12, PV = 0, PMT = -600, cpt FV = $1,272

In Three Years You Will Begin Receiving an Annual Payment