Use This Information to Answer the Following Question If an Accumulation of $8,000 Is Desired at the End

Use this information to answer the following question. $\begin{array}{|c|c|c|}\hline \text { Periods } & \text { Future Value of } \$ 1 \text { at } 12 \text { Percent } & \begin{array}{c}\text { Future Value of Ordinary Annuity of } \$ 1 \\\text { at } 12 \text { Percent }\end{array} \\\hline 1 & 1.120 & 1.000 \\\hline 2 & 1.254 & 2.120 \\\hline 3 & 1.405 & 3.374 \\\hline\end{array}$ If an accumulation of $8,000 is desired at the end of three years, what amount must be deposited at the end of each of the three years?

A) $2,371.07
B) $26,992.00
C) $5,693.95
D) $11,240.00

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free