What Is the Future Value (FV)of $60,000 in Five Years,assuming

question 38

Multiple Choice

What is the future value (FV) of $60,000 in five years,assuming the interest rate is 5% per year?

• A)$62,500.00
• B)$72,674.86
• C)$75,000.00
• D)$76,576.89

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Definitions:

Capital Budgeting

The process used by businesses to evaluate and decide on major investments or expenditures.

Monte Carlo Simulation

A statistical technique that uses random sampling and variability to predict outcomes of a process, often used in finance to model risk and uncertainty in investment portfolios.

Simulation

The process of creating a model to study the behavior of a system or its components under various conditions.

Capital Budgeting

The process of assessing and planning for a company's long-term investment opportunities and expenditures to ensure profitability and expansion.