Present Value of 1 Future Value of 1

question 63

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

• A)$141,000
• B)$112,095
• C)$100,000
• D)$111,615
• E)$105,000

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Definitions:

Invalid Argument

An argument whose conclusion does not logically follow from its premises, even if all the premises are true.

True Conclusion

An outcome of reasoning or argumentation that accurately reflects reality or fact.

Enthymeme

A categorical syllogism with an unstated premise or conclusion.

Unstated Premise

An implicit assumption or belief in an argument that is not expressed by its premises or conclusion.