You Have a Goal of Having $100,000 Five Years from Today

question 126

Multiple Choice

You have a goal of having $100,000 five years from today. The return on the investment is expected to be 10% and will be compounded semi-annually. The amount that needs to be invested today is closest to:

• A)$61,390.
• B)$62,090.
• C)$78,350.
• D)$38,550.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly assignable to specific units of production, including indirect materials, indirect labor, and other indirect costs.

Cost of Goods Sold

The total cost associated with making the products that a company sells during a period, including labor, materials, and overhead.

Balance Sheet

A report detailing a business's liabilities, assets, and equity held by shareholders at a particular moment, offering a glimpse into its financial status.

Spreadsheet

A spreadsheet is a digital document consisting of rows and columns used to organize, calculate, and manage data, commonly via applications such as Microsoft Excel or Google Sheets.