Miley Expects to Receive the Following Payments: Year 1 =

question 124

Multiple Choice

Miley expects to receive the following payments: Year 1 = $50,000; Year 2 = $28,000; Year 3 = $12,000.All of this money will be saved for her retirement.If she can earn an average of 10.5 percent on her investments,how much will she have in her account 25 years after making her first deposit?

• A)$772,373
• B)$789,457
• C)$806,311
• D)$947,509
• E)$1,033,545

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Definitions:

Treasury Stock

Stocks that have been initially distributed and then bought back by the company that issued them, thus decreasing the quantity of available shares in the market.

Contra Equity Account

An equity account where balances are opposite to the normal accounts and are used to reduce the value of equity accounts.

Voting Rights

The entitlements of shareholders to vote on company matters, typically proportional to the number of shares they hold.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the company.