A Company Needs to Have $150,000 in 5 Years, and Will

question 5

Multiple Choice

A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) $112,095
• B) $141,000
• C) $105,000
• D) $100,000
• E) $45,000

---

Definitions:

Panels

Groups of individuals selected to review or discuss specific topics, or a series of flat boards forming part of a structure or piece of furniture.

Negative Slope

Characteristic of a line or curve on a graph that shows a decrease in the value of one variable when another variable increases.

Positive Slope

In graphing terms, indicates an increase in the y-variable for an increase in the x-variable, typically reflecting a direct relationship between two variables.

Panels

Groups of people selected to provide feedback or opinions on various topics or a term used to refer to flat components, like solar panels, that form part of a larger structure.