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Johnson Has an Annuity Due That Pays $600 Per Year

Question 3

Multiple Choice

Johnson has an annuity due that pays $600 per year for 15 years.What is the value of the cash flows 15 years from today if they are placed in an account that earns 7.50%? Note: You are asked to find the FV one year after the last cash flow is realized.


A) $9,000.00
B) $9,675.00
C) $15,671.02
D) $16,846.35

Correct Answer:

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