Use this information to answer the following question.
-A deposit of $5,800 made at the end of each year for three years would grow to how much,assuming an APR of 12 percent?
A)$8,149.00
B)$19,569.20
C)$17,400.00
D)$19,488.00

Question

Use this information to answer the following question.  
-A deposit of $5,800 made at the end of each year for three years would grow to how much,assuming an APR of 12 percent?
A)$8,149.00 
B)$19,569.20 
C)$17,400.00 
D)$19,488.00

Quizplus · Accepted Answer

This problem involves calculating the future value of an annuity, where a fixed amount ($5,800) is deposited at the end of each year for three years at an annual interest rate of 12%. The formula for the future value of an annuity is FV = P * [((1 + r)^n - 1) / r], where P is the payment amount, r is the annual interest rate, and n is the number of periods. Plugging in the values: FV = 5800 * [((1 + 0.12)^3 - 1) / 0.12] = 5800 * [(1.404928 - 1) / 0.12] = 5800 * 3.374 = $19,569.20.

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