If a Company Wishes to Accumulate $500,000 in 20 Years

question 150

Multiple Choice

If a company wishes to accumulate $500,000 in 20 years at 5% by making equal yearly deposits into an account,calculation of the deposits is an application of the

• A)future value of a single amount.
• B)present value of a single amount.
• C)future value of an annuity.
• D)present value of an annuity.

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Definitions:

Voidable Title

A title that is capable of, or subject to, being judged invalid or void.

Good Faith Purchaser

An individual who buys something without knowledge of any outstanding rights, claims, or encumbrances held by others, thereby receiving full legal rights to the item.

FOB

An acronym for "Free on Board", a shipping term used in international trade to denote when liability and ownership of goods is transferred from seller to buyer.

Shipment Contract

A type of sale contract in which the seller is obligated to send the goods to the buyer, but the risk of loss passes to the buyer when the goods are delivered to the carrier.