Find the Total Value of the Given Income Stream and Also

question 89

Multiple Choice

Find the total value of the given income stream and also find its future value (at the end of the given interval) using the given interest rate.

• A)TV = $2,200,000, FV = $3,667,532.75
• B)TV = $5,800,000, FV = $4,356,486.55
• C)TV = $1,400,000, FV = $2,518,281.83
• D)TV = $2,200,000, FV = $5,467,532.75
• E)TV = $2,000,000, FV = $-2,296,343.85

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Definitions:

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Personal Line

A type of credit product that allows individuals to borrow up to a pre-approved limit on an as-needed basis.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference for other rates.

Loan Repayment

The process of paying back borrowed money, typically in installments over a set term.