Use this information to answer the following question.
-A deposit of $5,800 made at the end of each year for three years would grow to how much,assuming an APR of 12 percent?
A)$8,149.00
B)$19,569.20
C)$17,400.00
D)$19,488.00

Question

Use this information to answer the following question.  
-A deposit of $5,800 made at the end of each year for three years would grow to how much,assuming an APR of 12 percent?
A)$8,149.00 
B)$19,569.20 
C)$17,400.00 
D)$19,488.00

Quizplus · Accepted Answer

This problem involves calculating the future value of an annuity, where equal payments are made at regular intervals into an account that earns interest. The formula for the future value of an annuity is FV = P * [((1 + r)^n - 1) / r], where P is the payment amount, r is the annual interest rate (as a decimal), and n is the number of payments. Here, P = $5,800, r = 0.12 (12%), and n = 3. Plugging these values into the formula gives FV = 5800 * [((1 + 0.12)^3 - 1) / 0.12] = 5800 * [((1.12)^3 - 1) / 0.12] = 5800 * (0.404928 / 0.12) = 5800 * 3.3744 ≈ $19,569.20.

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