Present and Future Value Tables of $1 at 3% Are

question 42

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year?

• A) 15 years.
• B) 16 years.
• C) 14 years.
• D) 12.3 years.

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Definitions:

Factory Utility Cost

Factory utility cost encompasses expenses related to the consumption of utilities such as electricity, gas, and water in a manufacturing facility.

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with the level of activity but not in direct proportion.

Cases Bottled

The quantity of product units, specifically bottles, packaged during a production run.

Production Volume

The total quantity of goods or products manufactured within a specified period.