If Today Is Year 0, What Is the Future Value

question 61

Multiple Choice

If today is Year 0, what is the future value of the following cash flows 10 years from now? Assume an interest rate of 6.9 percent per year.

• A) $35,211.57
• B) $36,666.67
• C) $38,604.00
• D) $40,020.50
• E) $42,141.41

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Definitions:

Pyridinium Chlorochromate

Pyridinium chlorochromate is a reagent used in organic chemistry for the oxidation of primary and secondary alcohols to aldehydes and ketones, respectively.

Cyclopentanol

An organic compound with the formula C5H10O, consisting of a cyclopentane ring bonded to a hydroxyl group, serving as an alcohol.

TsCl

Tosyl chloride, a compound used to activate alcohols for substitution reactions or convert them into tosylates, enhancing their reactivity.

LiAlH4

Lithium aluminium hydride, a strong reducing agent commonly used in organic chemistry to reduce aldehydes, ketones, and esters to alcohols.