A Company Wants to Have $20,000 at the End of a Ten-Year

question 16

Multiple Choice

A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%? (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) $3,254.68
• B) $3,539.82
• C) $6,440
• D) $7,720

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Definitions:

Diet

The combination of foods and beverages consumed by an individual, often considered in terms of nutritional quality and balance.

Body Mass Index (BMI)

An estimate of obesity determined by body weight and height.

Obese

A condition characterized by excessive body fat accumulation that presents a risk to health, typically defined by a Body Mass Index (BMI) of 30 or higher.

Overeating

The act of consuming food in quantities greater than the energy expenditure of the individual, often leading to weight gain and potential health issues.