If You Start Making $100 Monthly Contributions Today and Continue

question 138

Multiple Choice

If you start making $100 monthly contributions today and continue them for five years, what is their future value if the compounding rate is 10 percent APR? What is the present value of this annuity?

• A)$508.14, $487.74
• B)$512.64, $491.80
• C)$7,743.71, $4,706.53
• D)$7,808.24, $4,745.78

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned into cash within a specific period.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights.

Market Price

The current market price for the acquisition or disposal of a service or asset.

Average Sale Period

The average time it takes for a company to sell its inventory, a critical measure for assessing the efficiency of inventory management.