How Much Money Has to Be Invested Now at 8

question 38

Multiple Choice

How much money has to be invested now at 8% continuous interest in order to have $1000 after 5 years?

• A) $461.56
• B) $18.32
• C) $183.20
• D) $670.32
• E) none of these

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Definitions:

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.

Net Income

The net income of a company following the subtraction of all costs and taxes from the gross revenue.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash.

Annual Financial Statements

Reports that give an overview of a company's financial condition for a specific fiscal year, including income statements, balance sheets, and cash flow statements.