A Company Wants to Have $40,000 at the End of a Five-Year

question 9

Multiple Choice

A company wants to have $40,000 at the end of a five-year period through investment of a single sum now. How much needs to be invested in order to have the desired sum in five years, if the money can be invested at 10% (Ignore income taxes.) ? Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

• A) $10,551
• B) $8,000
• C) $24,840
• D) $12,882

---

Definitions:

Memory Researchers

Individuals or scientists dedicated to studying how memory works, including how information is encoded, stored, and retrieved.

Rarely

Occurring not often or infrequently.

Memory Construction

The process by which the brain forms, consolidates, and revises memories, influenced by perception, imagination, and biases.

False Memories

Memories that feel real but are constructed by the mind, often a blend of actual events and imaginative fabrications.