A Company Wants to Have $20,000 at the End of a Ten-Year

question 54

Multiple Choice

A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%? (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

• A) $3,254.68
• B) $3,539.82
• C) $6,440
• D) $7,720

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Definitions:

Scored Tablet

A tablet manufactured with a groove or line, allowing it to be easily split into halves or quarters for dosing flexibility.

Unscored Tablet

A solid dosage form of medication without any indents or marks, which could make it harder to split or break evenly.

24-Hour Clock System

A timekeeping system that runs from midnight (00:00) to 23:59, eliminating the need for AM and PM to denote morning or afternoon/evening times.