An Investment Will Make One Payment of $24,000 Eleven Years

question 37

Multiple Choice

An investment will make one payment of $24,000 eleven years from now. What is the current value of this investment if the nominal rate of return is 5.8 percent?

• A) $11,980.86
• B) $12,124.29
• C) $12,390.08
• D) $12,908.30
• E) $13,515.46

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Definitions:

Dissolution

The process of legally terminating the existence of a corporation, partnership, or other legal entity.

Creditors

Creditors are individuals or institutions that lend money or extend credit to others, holding the right to receive payment for debts owed to them.

Corporation

A legal entity formed by a group of individuals to engage in and operate a business, recognized by law as having rights and liabilities distinct from those of its members.

Controlling Interest

Ownership of a sufficient portion of a company's stock to dictate its policies and management decisions.