What Is the Value in Year 6 of a $900

question 31

Multiple Choice

What is the value in year 6 of a $900 cash flow made in year 4 when the interest rates are 8 percent?

• A) $1,044.00
• B) $1,049.76
• C) $1,332.00
• D) $1,428.19

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Definitions:

Capital

Capital refers to the financial resources that businesses use to fund their operations and grow, including equity, debt, and retained earnings.

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Rent Expense

The cost incurred by a business for leasing a property or equipment for operational purposes.

Income Summary

An account used in the closing process that summarizes the results of all revenue and expense accounts.