Use This Information to Answer the Following Question What Amount Must Be Deposited Today So That $600 May

question 156

Multiple Choice

Use this information to answer the following question. $$\begin{array} { | c | c | c | } \hline \text { Periods } & \text { Present Value af } \$ 1 \text { at } 7 \text { Percent } & \text { Present Value af Ordinary Annuity of } \\&&\text { \$1 at } 7 \text { Percent } \\1 & 0.935 & 0.935 \\\hline 2 & 0.873 & 1.808 \\\hline 3 & 0.816 & 2.624 \\\hline\end{array}$$ What amount must be deposited today so that $600 may be withdrawn at the end of each year for three years?

• A) $1,800.00
• B) $1,925.14
• C) $1,574.40
• D) $1,683.00

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Definitions:

Capital Balances

The amount of money that partners or owners have invested in the business.

Profits and Losses

Financial results of a company's operations, with profits indicating net income and losses indicating net expenses exceeding revenues.

Admitted

The term is commonly used in insurance, indicating an insurer is licensed to operate in a particular state. Otherwise, NO.

Liquidate a Partnership

The process of dissolving a partnership by selling its assets, paying off debts, and distributing the remaining assets to partners.