A Company Wishes to Make Annual Contributions into a Fund

question 101

Multiple Choice

A company wishes to make annual contributions into a fund intended to retire $400,000 in debt five years from now.The amount to contribute each year equals $400,000

• A) divided by the appropriate future value of an ordinary annuity factor.
• B) times the appropriate present value of an ordinary annuity factor.
• C) times the appropriate future value of an ordinary annuity factor.
• D) divided by the appropriate present value of an ordinary annuity factor.

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Definitions:

Nonnutritive Sweeteners

Artificial or natural sweeteners that provide little to no energy, used as sugar substitutes in food and beverages.

Saturated Fat

A type of dietary fat found primarily in animal products and certain oils, known for raising LDL (bad) cholesterol levels in the blood.

Cholesterol Intake

The amount of cholesterol consumed through food, important to monitor as excessive intake can lead to increased risk of heart disease and stroke.

Nasogastric Tube

A flexible tube that is inserted through the nose, down the esophagus, and into the stomach for feeding or medical treatment purposes.