The Future Value of $200 Received Today and Deposited at 8

question 167

Multiple Choice

The future value of $200 received today and deposited at 8 percent for three years is approximately ________.

• A)$248
• B)$252
• C)$159
• D)$253

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Definitions:

Net Cash Flow

The disparity between what a business earns and spends in cash over a designated timeframe.

Dividend Payments

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, reflecting the company's operational, investing, and financing activities.

Financing Activities

Transactions and business events that affect long-term liabilities and equity of a company, including issuance of shares, buyback of shares, and loans taken or given.