Narrative 11-1 Solve the Following Problems Using Either Tables 11-1 or 11-2

question 28

Multiple Choice

Narrative 11-1
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent)
-Refer to Narrative in your text 11-1. Keishawn wants to have $6,000 in 20 years. Calculate how much he should invest now at 8% interest, compounded annually in order to reach his goal.

• A) $1,287.30
• B) $1,872.15
• C) $1,122.45
• D) $2,550.00

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Definitions:

Tax Rate

The rate at which a person or business is taxed on their earnings or profits.

Borrowed Funds

Money that is borrowed from banks or other lenders that must be repaid, often with interest, according to agreed upon terms.

CCA

Canadian Controlled Private Corporation, regarding taxation in Canada, or can refer to Capital Cost Allowance, which is a tax deduction in Canada that represents depreciation for tax purposes.

Net Advantage

The total benefit gained from a financial decision or investment, taking into account all relevant costs and revenues.