$3,000 Is Deposited into an Account Paying 10 Percent Annually

question 128

Multiple Choice

$3,000 is deposited into an account paying 10 percent annually, to provide three annual withdrawals of $1,206.34 beginning in one year.How much remains in the account after the second payment has been withdrawn?

• A)$1,326.97
• B)$1,206.34
• C)$1,096.67
• D)$587.32

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Definitions:

Double Taxation

A situation where the same income is taxed twice, typically once at the corporate level and again when distributed to shareholders as dividends.

Company Management

The group of individuals responsible for making major decisions, overseeing operations, and managing the resources and strategy of a company.

Capital Budgeting

The process by which a business evaluates and selects long-term investments based on their potential to generate future profit.

Long-Term Investments

Long-term investments are financial assets intended to be held for a period longer than one year, aiming for higher returns over time.