A Company Expects to Invest $5,000 Today at 12% Annual

question 50

Multiple Choice

A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) 8 years
• B) 0.322 years
• C) 10 years
• D) 3.1058 years
• E) 5 years

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Definitions:

S Corporations

A type of corporation in the United States that allows profits, and some losses, to be passed directly to owners' personal income without being subject to corporate tax rates.