To Determine the Amount to Be Deposited in a Bank

question 11

Multiple Choice

To determine the amount to be deposited in a bank today to grow to $5,000 three years from now at 7%,which table should be used?

• A)Present value of 1.
• B)Future value of 1.
• C)Present value of an annuity.
• D)No table is required;just multiply $5,000 by 1.07.

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Definitions:

Certificate of Authority

An official document granting a company the right to do business in a jurisdiction beyond where it was originally incorporated.

Official Authorization

Formal approval granted by an authorized entity, often required for specific actions or operations.

Corporation

A legal entity (or a legal person) created by either a state or federal statute authorizing individuals to operate an enterprise.