What Will the Value of $18 000 Be in 10

question 41

Multiple Choice

What will the value of $18 000 be in 10 years if the current interest rate is 12%?

• A) $5795.52
• B) $39 600.00
• C) $40 579.20
• D) $55 905.27

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Definitions:

Direct Method

A cash flow statement preparation approach that separately lists major classes of gross cash receipts and payments.

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to compute net cash from operating activities.

Prepaid Rent Expense

An advance payment for rent that is recorded as an asset until the period to which it relates passes.

Cash Flow From Operations

A financial metric that indicates the money generated by a company's regular business activities over a specified period.