Which of the Following Is the Correct Way to Compute

question 443

Multiple Choice

Which of the following is the correct way to compute the future value of $X that earns r percent interest for N years?

• A) $X1 + rN)N
• B) $X1 + r)N
• C) $X1 + rN)
• D) $X1 + r/N)N

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Definitions:

Taxes

Mandatory financial charges imposed by governments on individuals, businesses, or transactions to fund public expenditure.

Transfers

Movements of income or wealth without the exchange of goods or services, such as grants, subsidies, or remittances.

Income Mobility

The ability of individuals or households to move across different income levels or brackets over time.