Solve the problem. Round to the nearest cent.
-Bob deposits $5000 at the end of each year in an ordinary annuity paying 3% interest compounded Annually. Find the amount he will have on deposit after 12 years.
A) $64,038.98
B) $70,960.15
C) $78,088.95
D) $65,960.15

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^n - 1] / r, where P is the annual payment, r is the interest rate, and n is the number of years. Plugging in the values: FV = 5000 * [(1 + 0.03)^12 - 1] / 0.03 = $70,960.15.

Solve the Problem. Round to the Nearest Cent