Billy Pierce Invests $1,000 at the End of Each Year

question 110

Multiple Choice

Billy Pierce invests $1,000 at the end of each year for 5 years at 9%. What is the future value of the investment?

• A)$5,985
• B)$1,250
• C)$4,599
• D)$7,523

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Definitions:

Required Rate of Return

The minimum annual percentage return an investor expects to earn when investing in a particular asset or project.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Operating Assets

Assets that are used in the daily operations of a business to generate revenue, excluding investment and financial assets.

Flexible Budget Graphs

Visual representations that display the relationship between budgeted and actual results over a range of activity levels, helping to analyze performance.