In Answering Which of the Following Questions Would You Find

question 206

Multiple Choice

In answering which of the following questions would you find it necessary to calculate a future value?

• A)If Jill puts $5,000 today into a bank account that pays 3 percent interest,then how much will she have in the account after 2 years?
• B)Should ABC Corporation buy a factory today for $2 million,knowing that the factory will yield the corporation $3 million after 5 years?
• C)As the winner of a lottery,should Michael choose an immediate payment of $250,000 or should he choose annual payments of $30,000 for each of the next 10 years?
• D)You would find it necessary to calculate a future value in order to answer all of these questions.

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Definitions:

Positron Emission Tomography

A nuclear medicine functional imaging technique that is used to observe metabolic processes in the body as an aid to the diagnosis of disease.

Brain Scans

Medical imaging techniques used to view the brain for diagnostic and research purposes, such as MRI or CT scans.

Deoxyribonucleic Acid

DNA; the molecule that contains the genetic instructions for the development and function of living things.

Ribonucleic Acid

A nucleic acid present in all living cells. Its principal role is to act as a messenger carrying instructions from DNA for controlling the synthesis of proteins.