If You Receive $15,000 Today and Can Invest It at a 5

question 2

Multiple Choice

If you receive $15,000 today and can invest it at a 5% annual rate compounded continuously,what will be your ending value after 20 years?

• A)$38,735.52
• B)$40,774.23
• C)$42,812.94
• D)$44,953.59
• E)$47,201.27

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time it was acquired or made.

Accounting Equation

The fundamental principle of accounting that states Assets = Liabilities + Equity, balancing a company's financials.

Balance Sheet

A financial record that outlines the assets, liabilities, and owners' equity of a company at a given time.

Liabilities

Financial obligations or debts that an entity is responsible for to external parties or creditors.