You Have Been Told That You Need $15,000 Today for Every

question 53

Multiple Choice

You have been told that you need $15,000 today for every $50,000 you want when you retire 30 years from now.What rate of interest was used in the present value computation? Assume interest is compounded annually.

• A)4.09 percent
• B)4.15 percent
• C)4.37 percent
• D)4.29 percent
• E)4.53 percent

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Definitions:

Franchising

The payment of a fee to a foreign business for rights to locally operate using its name, branding, and methods.

Strategic Alliance

A collaborative effort among two or more corporations to achieve specific targets, while continuing to operate as independent entities.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Importing

The process of buying goods or services from foreign countries for sale or use in one's own country.