What Is the Future Value (FV) of $20,000 in Four

question 43

Multiple Choice

What is the future value (FV) of $20,000 in four years, assuming the interest rate is 12% per year?

• A) $31,470.39
• B) $28,292.66
• C) $17,096.08
• D) $32,020.64

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Definitions:

Financing Sections

Parts of financial statements or documents that deal with the sources of a company's funds, including equity and debt financing.

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash provided by operating activities.

Direct Method

A cash flow statement preparation approach that shows the specific sources of operating cash receipts and payments.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit which are payable within a year.