Use the following 8% interest factors for questions . $\begin{array}{lll}
&\text { Present Value of}&\text {Future Value of }\&\text {Ordinary Annuity }&\text {Ordinary Annuity }\
\hline 7 \text { periods } & 5.2064 & 8.92280 \
8 \text { periods } & 5.7466 & 10.63663 \
9 \text { periods } & 6.2469 & 12.48756
\end{array}$
-What will be the balance on September 1, 2013 in a fund which is accumulated by making $8,000 annual deposits each September 1 beginning in 2006, with the last deposit being made on September 1, 2013? The fund pays interest at 8% compounded annually.
A)$85,093
B)$71,383
C)$60,480
D)$45,973

Question

Use the following 8% interest factors for questions . $\begin{array}{lll}
&\text { Present Value of}&\text {Future Value of  }\&\text {Ordinary Annuity }&\text {Ordinary Annuity }\
\hline 7 \text { periods } & 5.2064 & 8.92280 \
8 \text { periods } & 5.7466 & 10.63663 \
9 \text { periods } & 6.2469 & 12.48756
\end{array}$
-What will be the balance on September 1, 2013 in a fund which is accumulated by making $8,000 annual deposits each September 1 beginning in 2006, with the last deposit being made on September 1, 2013? The fund pays interest at 8% compounded annually.
A)$85,093
B)$71,383
C)$60,480
D)$45,973

Quizplus · Accepted Answer

The future value of an ordinary annuity is calculated as follows:FV = P * [(FVIFA, i, n) - 1] / iwhere:P is the annual paymenti is the interest raten is the number of periodsFVIFA is the future value interest factor for an ordinary annuityIn this case, we have:P = $8,000i = 8%n = 8FVIFA = 10.63663Substituting these values into the formula, we get:FV = $8,000 * [(10.63663) - 1] / 0.08FV = $8,000 * 9.63663FV = $77,093Therefore, the balance on September 1, 2013 will be $77,093.

Use the Following 8% Interest Factors for Questions -What Will Be the Balance on September 1, 2013 in