Ajax Company Purchased a Five-Year Certificate of Deposit for Their

Multiple Choice

Ajax Company purchased a five-year certificate of deposit for their building fund in the amount of $220,000. How much should the certificate of deposit be worth at the end of five years if interest is compounded at an annual rate of 9%?

A) $857,230.
B) $142,985.
C) $319,000.
D) $338,496.FV = $220,000 x 1.53862* = $338,496 *FV of $1: n=5; i=9%