Question 5 • FT GMS AMDM B IC – 72
For an ordinary annuity, use the future value formula: payment × [((1 + monthly rate)^number of months − 1) ÷ monthly rate]. The monthly rate is 12% ÷ 12 = 1%, so the balance is $300 × [((1.01)^9 − 1) ÷ 0.01] = $2,810.56. The correct choice is $2,810.56.
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