1. Andrew invests $9,000 at the end of each year for 20 years. The rate of interest Andrew gets is 8% annually. Using the tables found in the textbook, determine the final value of Andrew's investment at the end of the twentieth year on this ordinary annuity.
A. $411,588.00
B. $411,858.00
C. $88,362.90
D. $88,632.90
2. A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years. Assuming twice the straight-line rate, the book value at the end of Year 2 using the declining-balance method is
A. $18,000.
B. $11,520.
C. $7,200.
D. $6,480.