You Plan to Invest in Securities That Pay 8

question 149

Multiple Choice

You plan to invest in securities that pay 8.0%,compounded annually.If you invest $5,000 today,how many years will it take for your investment to grow to $9,140.20?

• A)5.14
• B)5.71
• C)6.35
• D)7.05
• E)7.84

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Definitions:

Working Capital Investment

Funds used by a company to finance its day-to-day operations, including investments in inventory and accounts receivable.

Net Present Value

The calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.

Cash Inflows

Any money coming into a company from various sources, including sales, financing, and investments.

Investment Proposal

A plan or suggestion put forward for consideration by others, typically involving expenditure on assets in expectation of achieving returns.