What Is the Future Value of $1,000, Placed in a Saving

question 58

Multiple Choice

What is the future value of $1,000, placed in a saving account for four years if the account pays 8%, compounded quarterly?

• A)$1,320.45
• B)$1,360.50
• C)$1,372.80
• D)None of the above

Identify how insurance can redistribute risk and its impact on expected utility.

Understand the role of insurance premiums and how they relate to the concept of fair insurance.

Describe efficient allocation of risk and the principles of diversification and pooling in reducing risk.

Analyze how changes in insurance policy premiums affect demand and supply.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in alignment with the firm's goal of shareholder value maximization.

International Accounting Standards

A set of accounting standards stating how particular types of transactions and events should be reported in financial statements, issued by the IFRS Foundation.

IAS 17

International Accounting Standard 17, which outlines the accounting policies and disclosures regarding leases for both lessees and lessors.

Capital Lease

This is a lease agreement that is classified as a purchase by the lessee, allowing the lessee to record the leased asset as owned on their balance sheet.