The Solution to This Problem Requires Time Value of Money

question 94

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. To calculate the future value of an amount that is invested at 12%, compounded quarterly, at the end of three years, the interest factor used would be

• A) 1% for 12 periods
• B) 3% for four periods
• C) 3% for 12 periods
• D) 12% for three periods

---

Definitions:

Euphoria

A feeling of intense excitement and happiness.

Apprehension

Anxiety or fear that something bad or unpleasant will happen.

Stimulants

Substances that increase the activity of the nervous system to boost alertness, attention, and energy.

Increased Heart Rate

A condition where the heartbeat is faster than normal, which can be a response to exercise, stress, or health issues.