A Company Wishes to Make Annual Contributions into a Fund

question 65

Multiple Choice

A company wishes to make annual contributions into a fund intended to retire $700,000 in debt five years from now.The amount to contribute each year equals $700,000

• 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:

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