Present Value of 1 Future Value of 1

question 16

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company needs to have $150,000 in 5 years,and will create a fund to insure that the $150,000 will be available.If it can earn a 6% return compounded annually,how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

• A)$141,000
• B)$112,095
• C)$100,000
• D)$45,000
• E)$105,000

Understand the basic emotions displayed by infants and their early emotional development.

Recognize the importance of nonverbal communication in early childhood development.

Understand the factors influencing suicide rates among adolescents.

Comprehend the concept and significance of social smiling in infant development.

---

Definitions:

Income

Earnings accrued from work or investment sources on a consistent basis.

Goods

Physical items that satisfy human wants or needs, which can be bought, sold, or traded.

Maximizing Utility

The process or goal of obtaining the highest level of satisfaction or benefit from the consumption of goods and services, given constraints like income.

Utility

A measure of satisfaction, usefulness, or value that an individual or society derives from a good or service.