For the 2002 Fiscal Year, Lowe's Companies, Inc

question 39

Multiple Choice

For the 2002 fiscal year, Lowe's Companies, Inc., reported an annual net income of $1.023 billion. Assume the income can be reinvested continuously at an annual rate of return of 9.0% compounded continuously. Also assume that Lowe's will maintain this annual net income for the next 7 years. What is the future value of its 7-year net income? Round your answer to three decimal places.

• A) $5.313 billion
• B) $7.644 billion
• C) $22.345 billion
• D) $9.976 billion
• E) $4.663 billion

---

Definitions:

Depression

An economic depression is a prolonged period of significant decline in economic activity across a region or country, characterized by high unemployment, low consumer spending, and a decrease in industrial production.

National Output

The total value of all goods and services produced within a country's borders in a given time period.

Stagflation

A period of slow economic growth combined with high unemployment and rising prices (inflation).

Minor Recessions

Brief periods of economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.