If an Investment Has a Goal (Future Value) of $S

question 110

Multiple Choice

If an investment has a goal (future value) of $S after n years, invested at interest rate i (as a decimal) , compounded annually, then the present value P that must be invested is given by . Find P for the given S, n, and i. Round your answer to two decimal places. ​
$18,000 after 10 years at 11.25%
​

• A)$5,457.03
• B)$12,542.97
• C)$6,198.3
• D)$7,671.36
• E)$11,801.7

---

Definitions:

Personal Income Tax

A tax levied on an individual's income, including wages, salaries, and other earnings, by the government.

Benefits-Received Principle

A theory in tax policy stating that taxes should be levied in accordance with the level of government services and benefits an individual or entity receives.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Income Taxes

Taxes levied by the government on the income of individuals or organizations.