-Refer to the Above Graph to Answer This Question

question 150

Multiple Choice

-Refer to the above graph to answer this question.What is the value of the multiplier?

• A)0.5
• B)1
• C)1.5
• D)2
• E)2.5

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Definitions:

Present Value

The current price of a future sum of money or stream of cash flows, discounted at a certain rate of return.

Cash Flow

The complete inflow and outflow of cash and equivalent financial assets within a business framework.

Future Value Formula

A mathematical equation used to calculate the future value of an investment based on its current value, the interest rate, and the time period of the investment.

Compounded Monthly

The process where interest earned on an investment is added to the principal each month, with future interest then earned on the new total.