Calculate the Future Value of Equal Semiannual Payments of $9,000

question 15

Multiple Choice

Calculate the future value of equal semiannual payments of $9,000 at 12% compounded semiannually for 4 years. The answer is

• A) $43,014.
• B) $55,888.
• C) $89,077.
• D) $114,757.

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Definitions:

Cash Collections

The process of gathering all cash receipts and payments, including from sales, financing, or investment activities.

Credit Customers

Customers who purchase goods or services on credit, with an agreement to pay at a later date.

Cash Disbursements

The outflow of cash for the purpose of payment, often documented for accounting purposes.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to the product.