Question

At the beginning of each year, Bill Ross invests $1,400 semi-annually at 8 percent for 9 years. The cash value of the annuity due at the end of the ninth year is: ...?

Answer 1

The correct answer would be D. $37,339.68.

To solve this,
$1,400 x 27.6712 = $38,739.68 - 1,400.00 = $37,339.18

This is what the cash value of the annuity due at the end of the ninth year is if Bill Ross invests $1,400 semi-annually at 8 percent for 9 years.

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