Use the Present Value Formula to Determine the Amount to Be

question 202

Multiple Choice

Use the present value formula to determine the amount to be invested now, or the present value needed.
-The desired accumulated amount is $20,800 after 15 years invested in an account with 5% interest Compounded annually.

• A) $10,505.41
• B) $43,241.71
• C) $10,005.16
• D) $10,794.84

---

Definitions:

EPS Growth Rate

The annual rate at which a company's earnings per share increases, indicating the company's profitability over time.

Investors Rate of Return

The percentage of return investors expect to earn on their investment, considering both the income and the appreciation of the investment.

Annual Dividend

The total dividend payments made to shareholders in a year, typically expressed per share.

Rate of Return

The enhancement or reduction in worth of an investment across a specific duration, measured as a proportion of the investment's original cost.