Future value of ordinary annuity with annual payments

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Reference no: EM132003299

1. After packing up to return home for the holidays after the fall semester, Morgan stopped at Double L bookstore to sell textbooks. After collecting $25, he headed back to his pickup truck only to find a broken window, the truck broken into, and all his suitcases and personal property gone. The damages to his pickup would be covered by:

1) property damage liability auto coverage.

2) uninsured motorist auto coverage.

3) personal injury protection.

4) comprehensive (other than collision) auto coverage.

5) collision coverage.

2. You are computing the future value of an ordinary annuity with annual payments of $400 each for three years. The annuity interest rate is 8 percent. The future value of each one of these three payments at the end of year 3 is:

a. $400.00, $370.37, and $342.94.

b. $370.37, $342.94, and $317.54.

c. $544.19, $503.88, and $466.56.

d. $503.88, $466.56, and $432.00.

e. $466.56, $432.00, and $400.00.

Reference no: EM132003299

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