Question
Chris Mann will deposit $22,400 into an account today that earns 10% per year compounded annually. Using the following factors, what is the amount that
Chris Mann will deposit $22,400 into an account today that earns 10% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years?
| Type of cash flow | (n) Periods | (i) Interest rate | Factor |
| PV of $1 | 5 | 10% | .62092 |
| FV of $1 | 5 | 10% | 1.61051 |
| PV ordinary annuity | 5 | 10% | 3.79079 |
| FV ordinary annuity | 5 | 10% | 6.10510 |
| PV annuity due | 5 | 10% | 4.16986 |
Group of answer choices
$36,075
$13,909
$27,351
$18,681
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
