Present and future value tables of $1 at 9% are presented below.

-Ajax Company purchased a five-year certificate of deposit for its building fund in the amount of $220,000. How much should the certificate of deposit be worth at the end of five years if interest is compounded at an annual rate of 9%?
A) $855,723.
B) $142,985.
C) $319,000.
D) $338,496.

Question

Present and future value tables of $1 at 9% are presented below.

-Ajax Company purchased a five-year certificate of deposit for its building fund in the amount of $220,000. How much should the certificate of deposit be worth at the end of five years if interest is compounded at an annual rate of 9%?
A) $855,723. 
B) $142,985. 
C) $319,000. 
D) $338,496.

Quizplus · Accepted Answer

FV = $220,000 × 1.53862* = $338,496
*FV of $1: n = 5; i = 9%

Present and Future Value Tables of $1 at 9% Are