A Firm's Net Income Last Year Was $1

question 131

Multiple Choice

A firm's net income last year was $1.5 million. Its net income grew 5 percent during the last "5" years. If that growth rate continues, how long will it take for the firm's net income to double?

• A) 7.6 years
• B) 10.47 years
• C) 14.21 years
• D) 14.55 years

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Definitions:

Management

The process of directing and controlling a group of people or an organization to achieve a goal.

Federal Income Tax

The charge imposed by the U.S. government on the yearly income of individuals, businesses, trusts, and other legal bodies.

FICA-OASDI

The Federal Insurance Contributions Act's component for Old-Age, Survivors, and Disability Insurance, a payroll tax that funds Social Security.