What Is the Future Value in Year Thirty-Five of an Ordinary

question 43

Multiple Choice

What is the future value in year thirty-five of an ordinary annuity cash flow of $4,000 per year at an interest rate of 11.0% per year?

• A)$1,366,358.22
• B)$555,000.32
• C)$196,694.12
• D)$140,000.00

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Definitions:

Cash Flow Hedge

A financial strategy used to manage the risk of future cash flow fluctuations due to changes in exchange rates, interest rates, or commodity prices.

Spot Exchange Rates

The current exchange rate at which one currency can be immediately exchanged for another currency in the foreign exchange market.

Derivative Fair Value

The current market value of a derivative financial instrument, reflecting potential gains or losses if it were closed out.

Comprehensive Income

Comprehensive Income includes all changes in equity of a company during a period from transactions and other events, excluding transactions with owners.