Answered: The future value of an annuity of…

The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly is O a. $93,049 O b. $75,401 O c. $11,200 O d. $17,549

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

The future value of an annuity of $1,000 each quarter for 10 years,
deposited at 12 percent compounded quarterly is
O a. $93,049
O b. $75,401
O c. $11,200
O d. $17,549

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