What Is the Total Future Value Six Years from Now

question 129

Multiple Choice

What is the total future value six years from now of $50 received in one year, $200 received in two years, and $800 received in six years if the discount rate is 8%?

• A) $1,050.00
• B) $1,047.93
• C) $1,145.56
• D) $1,237.21
• E) $1,269.15

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Definitions:

Commercial Substance

A financial concept indicating that a transaction significantly changes the economic position or cash flows of the entity.

Equipment Ledger

A detailed record that tracks the acquisition, depreciation, and disposal of equipment owned by a business.

Commercial Substance

A situation where a transaction causes a significant change to the future cash flows of a company.

Book Value

The value of an asset according to its balance sheet account balance, calculated as the original cost of the asset minus any accumulated depreciation, amortization, or impairment costs.