Compute the Future Value in Year 12 of a $2,000

question 47

Multiple Choice

Compute the future value in year 12 of a $2,000 deposit in year 3 and another $4,000 deposit at the end of year 5 using a 10% interest rate.

• A) $12,510.77
• B) $12,909.81
• C) $13,4067.31
• D) $15,007.52

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Definitions:

Resale Value

The expected amount that an item or asset can be sold for at a future date, taking into account depreciation and market demand.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life.

Transmitter

A device that sends signals, such as radio waves, from one location to another, typically used in communication systems.