Present Value of 1 Future Value of 1

question 2

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years.Assuming he can earn an interest rate of 5% compounded annually,how much of his inheritance must he invest today?

• A)$50,000.00
• B)$47,500.00
• C)$45,125.00
• D)$38,608.50
• E)$100,000.00

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Definitions:

Debris Flows

Rapidly moving masses of rock fragments, soil, and mud, with a large amount of water, often down mountain slopes.

Flash Floods

Rapid flooding of geomorphologic low-lying areas - washes, rivers, dry lakes, and basins caused by intense rainfall events or sudden release of water.

Soil Erosion

The removal of topsoil by water, wind, or human activity, leading to loss of nutrients and soil fertility.

Alluvial Fans

Cone-shaped deposits of sediment crossed and built up by streams, typical at the base of mountain ranges in arid and semi-arid climates.