You Want to Have $100,000 in Five Years

question 122

Multiple Choice

You want to have $100,000 in five years.If the interest rate is 8 percent,about how much do you need to have today?

• A)$66,225.25
• B)$67,556.42
• C)$68,058.32
• D)$71,428.57

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Definitions:

Shareholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, essentially the net worth attributable to shareholders.

Liabilities

Financial obligations or debts that a company owes to external parties or creditors.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.

Financial Position

A snapshot of the resources a company controls and its obligations at any given time, indicating its economic standing.