You Have $10,000 That You Can Invest in a Savings

question 69

Multiple Choice

You have $10,000 that you can invest in a savings account that earns 7% interest,compounded annually.If you want to withdraw at least $18,000 at some point in the future,how long will you need to keep the money invested? (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to nearest dollar amount. )

• A)9 years
• B)10 years
• C)11 years
• D)12 years

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Definitions:

Dividends

Profit distributions by a corporation to its shareholders, usually as an earnings sharing.

Outstanding Shares

The total number of shares of a company that are currently owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Dividends Paid

The portion of a company's earnings distributed to shareholders as a payment.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.