At an Interest Rate of 7% Per Annum,cash Flows of $1000

question 70

Multiple Choice

At an interest rate of 7% per annum,cash flows of $1000 in 5 years and $50 000 in 20 years have a future value in 60 years of:

• A)$799 838.49.
• B)$759 002.73.
• C)$791 355.91.
• D)$790 037.89.

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Definitions:

Salvage Value

The estimated residual value of an asset after its useful life has ended.

Marriage Penalty

In the tax system, the phenomenon that a two-income married couple pays more tax than the sum of two single people making the same money.

Two-Income Married Couples

Households in which both spouses earn income from employment.

Taxes

Mandatory financial charges or other types of levies imposed upon a taxpayer by a governmental organization.