Assume That the Desired Rate of Return Is 10% and That

question 74

Multiple Choice

Assume that the desired rate of return is 10% and that interest is compounded annually. Identify how much must be invested today to have $10,000 in 5 years and 10 years, respectively.

• A) $1,000; $5,000
• B) $5,000; $1,000
• C) $3,791; $6,145
• D) $6,209; $3,855

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Definitions:

Spatial Differentiation

The division or organization of space or geographical areas based on different functions, uses, or characteristics.

Geographic Dispersion

The spread or distribution of something or someone over a geographic area, indicating how spread out they are across different locations.

Vertical Differentiation

The arrangement of an organization into hierarchical levels, where each level has different levels of authority and responsibility.

Horizontal Differentiation

The division of roles and responsibilities within an organization at the same hierarchical level to achieve specialization.