Given a 10 Percent Interest Rate, Compute the Year 9

question 145

Multiple Choice

Given a 10 percent interest rate, compute the year 9 future value if deposits of $10,000 and $20,000 are made in years 1 and 5 respectively, and a withdrawal of $5,000 is made in year 7.

• A) $44,667.89
• B) $45,103.47
• C) $46,585.66
• D) $47,002.89

Understand the concept of organizational systems and the value chain in effective organizations.

Realize the importance of interpersonal skills and evidence-based management for OB managers.

Recognize the concept of internal clients within an organization.

Comprehend the principle of positive organizational behavior and its emphasis on human capital.

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Definitions:

Straight-line Method

A depreciation technique that allocates an equal amount of depreciation expense each year over the useful life of an asset.

Estimated Salvage Value

The expected value that an asset will realize upon its sale at the end of its useful life, used in computing depreciation.

Depreciable Cost

The total cost of an asset that is subject to depreciation, which includes the purchase price minus any salvage value.

Useful Life

The estimated period of time over which a fixed asset is expected to be usable by the business, influencing depreciation calculations.