What Is the Future Value (FV) of $20,000 in Four

question 93

Multiple Choice

What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year?

• A) $15,208.16
• B) $19,887.59
• C) $23,397.17
• D) $25,736.89

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Definitions:

Tax-Deductible Expense

An expense that can be subtracted from taxable income, effectively reducing the overall tax liability.

Debt Financing

Raising capital through the borrowing of funds to be repaid with interest over time.

FIFO Method

First In, First Out, an inventory valuation method where the oldest inventory is sold first.

Inventory Value

Inventory value is the total cost or market value of all the goods held by a company that are ready or will be ready for sale.