Johnson has an annuity due that pays $600 per year for 15 years. What is the value of the cash flows 15 years from today if they are placed in an account that earns 7.50%? Note: You are asked to find the FV one year after the last cash flow is realized
A) $9,000.00
B) $9,675.00
C) $15,671.02
D) $16,846.35
Answer: D
Explanation: D) FV = PMT × × (1 + r)n = $600 × × (1.075)1 = $16,846.35.
MODE = BEGIN
INPUT 15 7.5 0 -600 ?
KEY N I/Y PV PMT FV
CPT 16,846.35
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