Use This Information to Answer the Following Question If $100 Is Invested, How Much Will It Grow to

question 55

Multiple Choice

Use this information to answer the following question. $\begin{array}{|c|c|c|}\hline \text { Periods } & \text { Present Value of } \$ 1 \text { at } 7 \text { Percent } & \begin{array}{c}\text { Present Value of Ordinary Annuity of } \$ 1 \\\text { at } 7 \text { Percent }\end{array} \\\hline 1 & 0.935 & 0.935 \\\hline 2 & 0.873 & 1.808 \\\hline 3 & 0.816 & 2.624 \\\hline\end{array}$
If $100 is invested, how much will it grow to at the end of the three years?

• A) $100 \(\times\) .935 \(\times\) 3
• B) $100 ÷ .816
• C) ($100 ÷ 2.624) \(\times\) 3
• D) $100 \(\times\) 2.624

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Definitions:

Ordinary Repairs

Expenses for routine maintenance and repairs that maintain the efficient operation of an asset but do not materially extend its life or increase its value.

Hydraulic Lift

A system that uses a fluid-driven mechanism to lift or move objects, often utilized in various machinery and equipment.

Appraised Value

The estimated monetary value of an asset determined by a qualified appraiser based on its condition and market trends.

Par Value

A nominal or face value assigned to a share of stock, often used in accounting to represent the minimum price at which shares can be issued.