The Future Value Three Years from Today of a $200

question 37

Multiple Choice

The future value three years from today of a $200 three-year annuity due compounded at a rate of 10% is equal to ________.

• A)$600.00
• B)$662.00
• C)$728.20
• D)$266.20

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Definitions:

Relevant Costs

Costs that should be considered when making a decision because they will be affected by the decision; these costs are future-oriented and differ among alternatives.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by any current or future actions.

Unproductive

Refers to resources or activities that do not contribute to the output or efficiency of a process or operation.

Fixed Costs

Costs that do not change in total with changes in the volume of production or sales, such as rent, salaries, and insurance.