A Company Wishes to Make Annual Contributions into a Fund

question 101

Multiple Choice

A company wishes to make annual contributions into a fund intended to retire $400,000 in debt five years from now.The amount to contribute each year equals $400,000

• A) divided by the appropriate future value of an ordinary annuity factor.
• B) times the appropriate present value of an ordinary annuity factor.
• C) times the appropriate future value of an ordinary annuity factor.
• D) divided by the appropriate present value of an ordinary annuity factor.

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Definitions:

Productive Contributions

Inputs or actions by individuals or entities that add value to the production process, resulting in the creation of goods or services.

Cardiovascular Risk

The likelihood of an individual experiencing cardiovascular events such as heart attack or stroke, often assessed based on factors like age, genetics, lifestyle, and medical history.

Sedentary

A lifestyle characterized by a significant amount of sitting or lying down with minimal physical activity, often linked to adverse health outcomes.

Social Support

The perception or reality of being cared for and having assistance available from other people, which can significantly impact health and well-being.