Use Table 12-1 of your text to find the future value of $300 deposited at the BEGINNING of every year, for 15 years if the bank pays 6% interest compounded annually.
A) $3,500.00
B) $6,982.79
C) $7,401.76
D) $4,770.00

Question

Quizplus · Accepted Answer

Since the deposit is made at the beginning of each year, this is an annuity due scenario. Using the future value formula for an annuity due or a financial calculator/table for annuities due with a 6% interest rate compounded annually over 15 years, the future value is closest to $7,401.76.

Use Table 12-1 of Your Text to Find the Future