What Is the Future Value of $2,500 Deposited for One

question 142

Multiple Choice

What is the future value of $2,500 deposited for one year earning a 14 percent interest rate annually?

• A) $2,550
• B) $2,850
• C) $2,950
• D) $3,150

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Definitions:

Dividend Policy

A company's approach to distributing profits back to its shareholders, dictating how much to pay out as dividends and how often.

Alternate Dividend Policy

A strategy used by a company to vary its dividend payments to shareholders based on its earnings or investment opportunities.

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.