In Order to Receive $12,000 at the End of Three

question 16

Multiple Choice

In order to receive $12,000 at the end of three years and $10,000 at the end of five years,how much must be invested now if you can earn 14% rate of return? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.)

• A) $8,100.
• B) $12,978.
• C) $13,293.
• D) $32,054.

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Definitions:

U.S. Government Securities

Financial instruments issued by the U.S. Treasury or federal government agencies to finance government spending and obligations.

Assets Component

Parts or elements that make up the total value of assets owned by an individual or organization.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Money Supply

is the total amount of monetary assets available in an economy at any given time.