Marie Is Considering Investing a Part of Her Future Income

question 49

Multiple Choice

Marie is considering investing a part of her future income in an investment account that offers 0.5% a month.She will start work in 6 months and her contract extends for 2 years.If the investment amount is $300 a month, what is the present value of this investment?

• A)$6,768.86
• B)$8,338.22
• C)$6,569.30
• D)$8,903.62

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Definitions:

Capital Raised

The total amount of funds collected by a company from investors or financial markets, often used for business operations, expansion, or paying off debt.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specified time frame.

Diluted Earnings

Earnings per share calculated under the assumption that all convertible securities have been converted into common stock, providing a "worst case" scenario perspective on earnings per share.

Ownership Perspective

An approach or mindset focusing on the long-term benefits and responsibilities of owning an asset or investment.