Eighteen Years from Now,4 Years of College Are Expected to Cost

question 44

Multiple Choice

Eighteen years from now,4 years of college are expected to cost $150,000.How much more must be deposited into an account today to fund this expense if you can earn only 8% on your savings rather than the 11% you hope to earn?

• A) $12,211.18
• B) $13,609.21
• C) $14,006.41
• D) $14,614.03

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Definitions:

Total Assets

The total value of everything a company owns, encompassing both current assets and long-term assets.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets or services.

Stockholders' Equity

The ownership stake of shareholders in a corporation, which is the value left over from the assets after liabilities have been taken out.

Treasury Stock

Shares that were issued and later reacquired by the company, reducing the amount of outstanding stock.