What Is the Future Value of $750 One Year from Today

question 165

Multiple Choice

What is the future value of $750 one year from today if the interest rate is 3 percent?

• A) 772.73
• B) 772.50
• C) 773.33
• D) None of the above are correct to the nearest cent.

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Definitions:

Credit Instrument Captive Finance Company

refers to a financial subsidiary company operated by a parent company primarily to provide financing for the sales and leasing of their products by offering credit to its customers.

Operating Cycle

The period it takes for a business to buy inventory, sell products, and collect cash from customers, essentially measuring the time between purchasing materials and receiving cash from sales.

Credit Period

The time duration given by a seller to a buyer to pay for a product or service, typically expressed in days.

Inventory Period

The average time that goods remain in inventory before being sold, indicating the efficiency of inventory management.