At 12% Interest (Compounded Annually),$20,000 Invested Today Will Grow to $________

question 39

Multiple Choice

At 12% interest (compounded annually) ,$20,000 invested today will grow to $________ in three years.

• A)27,200
• B)28,099
• C)31,471
• D)40,000

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Definitions:

Tax Rate

The portion of income or profits the government takes as tax from a person or company.

Unlevered Value

Unlevered value is the value of a company or investment assuming it has no debt financing, focusing solely on its equity value.

Tax Rate

The proportion of financial income that is taxed from either a person or a corporate body.

Unlevered Rate

A financial metric that measures the return on investment without considering the impact of financial leverage.