You Are Scheduled to Receive $7,500 in Three Years

question 40

Multiple Choice

You are scheduled to receive $7,500 in three years.When you receive it,you will invest it for eight more years at 7.5 percent per year.How much will you have in eleven years?

• A)$13,376.08
• B)$14,428.09
• C)$15,110.24
• D)$16,113.33
• E)$16,617.07

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Definitions:

Repurchase

The action of buying back previously sold shares or goods, often by the company that issued or sold them initially.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with dividends that are paid out before those to shareholders of common stock.

Common Stock

Common stock is a type of equity ownership in a corporation, representing a claim on part of the company's profits and conferring voting rights.