A Company Has $46,000 Today to Invest in a Fund

question 10

Multiple Choice

A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) $62,582
• B) $47,840
• C) $57,040
• D) $58,075
• E) $58,204

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Definitions:

Complex Fraction

A fraction where the numerator, the denominator, or both contain fractions themselves.

Simplify

The process of reducing an expression or equation to its most basic form.

Division

One of the four basic operations in arithmetic, division calculates how many times a number (dividend) can be contained within another number (divisor).

Simplify

To reduce a complex expression to its simplest form by performing all possible operations and combining like terms.