The Solution to This Problem Requires Time Value of Money

question 26

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
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Kingston inherited $140,000 from an aunt.If Kingston decides not to spend his inheritance but to leave the money in his savings account until he retires in 15 years,how much money will he have assuming an annual interest rate of 8%,compounded semiannually?

• A)$308,000
• B)$509,880
• C)$454,020
• D)$7,851,900

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Definitions:

Personal Standards

Personal standards in negotiations represent an individual's expectations or criteria for acceptable outcomes and behavior in the negotiation process.

Organizational Demands

Refers to the expectations, requirements, or needs that an organization places on its employees or departments to achieve its goals.

Temptation To Misrepresent

The urge or inclination to distort or falsify information, often encountered in negotiations where one party may see an advantage in not being entirely truthful.

Self-fulfilling Logic

A belief or expectation that, purely as a result of being held, causes itself to become true.