You Will Need Three Amounts of $14 200 in Each

question 128

Multiple Choice

You will need three amounts of $14 200 in each year for four years in order to go to school. You are planning on going to school starting in 5 years and ending in 8 years (years 5, 6, 7, 8) . You are able to earn 9.64% compounded quarterly. How much money do you have to have today in order to be able to go to school?

• A) $30 574.35
• B) $30 457.35
• C) $30 754.35
• D) $30 475.34
• E) $33 354.35

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Definitions:

Fixed Cost Elements

Costs that do not change with the level of production or sales activity within a certain range or over a certain period.

Telephone Costs

Expenses related to the usage of telecommunication services by a business, categorized as utility expenses and recorded in the income statement.

Margin Of Safety

The difference between actual or projected sales and the break-even point, measuring operational risk and efficiency.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.