Lucas Will Receive $6,800, $8,700, and $12,500 Each Year Starting

question 106

Multiple Choice

Lucas will receive $6,800, $8,700, and $12,500 each year starting at the end of year one. What is the future value of these cash flows at the end of year five if the interest rate is 7 percent?

• A)$32,418
• B)$32,907
• C)$33,883
• D)$35,411
• E)$36,255

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Definitions:

Poor

A socioeconomic status characterized by a lack of financial resources and access to basic life necessities.

Meth

A powerful, addictive stimulant drug, also known as methamphetamine, that affects the central nervous system.

Powder Cocaine

A fine, white crystalline drug obtained from coca leaves, often snorted, that can cause euphoria and addiction; it's contrasted with crack cocaine, a more potent form that's smoked.

Poor Person's Drug

A term referring to inexpensive addictive substances that are more accessible to individuals of lower socioeconomic status.