Chris Wants to Accumulate $100,000 in 5 Years $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$

question 3

Multiple Choice

Chris wants to accumulate $100,000 in 5 years.He plans on making equal semiannual deposits into an investment account that earns 12% semiannually in order to reach his goal.How much must Chris invest every six months? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s) from the tables provided.) }}$

• A)$24,331.19
• B)$10,153.39
• C)$13,586.77
• D)$10,000.00
• E)$7,586.79

---

Definitions:

Total Stockholders' Equity

The total value of a corporation's equity owned by shareholders, synonymous with stockholders' equity but emphasizes the aggregation.

Retained Earnings

The part of the net earnings kept by the company instead of being paid out to shareholders as dividends.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders the right to vote at shareholder meetings and receive dividends.

Retained Earnings

The cumulative amount of net income kept in the company to be reinvested in its core business or to pay debt, after paying dividends to shareholders.