Gorman Corporation Makes an Investment Today (January 1, 2006)

question 66

Multiple Choice

Gorman Corporation makes an investment today (January 1, 2006) .They will receive $20,000 every December 31st for the next six years (2006 - 2011) .If Gorman wants to earn 12% on the investment, what is the most they should invest on January 1, 2006?

• A)$82,228.
• B)$92,096.
• C)$162,304.
• D)$181,780.

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Definitions:

Contraceptive Sponges

A barrier method of contraception that is inserted into the vagina to prevent sperm from entering the uterus.

Toxic Shock Syndrome

A rare, life-threatening condition caused by bacterial toxins, often associated with tampon use.

Diaphragms

Barrier contraceptive devices placed inside the vagina to prevent sperm from reaching the uterus.

Bacteria

Microscopic, single-celled organisms found in virtually all environments on Earth, which can be beneficial, neutral, or harmful to humans and other organisms.