Your Goal Is to Be Able to Withdraw $5,000 for Each

question 126

Multiple Choice

Your goal is to be able to withdraw $5,000 for each of the next ten years beginning one year from today.The return on the investment is expected to be 12%.The amount that needs to be invested today is closest to: (FV of $1,PV of $1,FVA of $1,and PVA of $1) (Use the appropriate factor(s) from the tables provided. )

• A)$44,645.
• B)$36,291.
• C)$28,251.
• D)$50,000.

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Definitions:

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.

Financial Statements

Reports that provide an overview of a company's financial condition, performance, and cash flows.

Cumulative Effect

The total change in financial statement results over a period of time due to an accounting principle change or correction of an error.