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.

---

Definitions:

Fund Shares Outstanding

The total number of shares issued and currently held by investors, including restricted shares owned by the company’s officers and insiders but excluding any repurchased shares.

Capital Gain Distributions

Payments made to shareholders that result from the selling of securities within the fund’s portfolio, which are subject to capital gains taxes.

Income Distributions

Payments made from a fund or account to investors, typically from earned interest or dividends from investments.

Net Asset Value

The value per share of a mutual fund or an ETF, calculated by dividing the total value of all the securities in the portfolio, minus any liabilities, by the number of shares outstanding.