Multiple Compounding (PV): Joan Alexander Wants to Go on a Cruise

question 13

Multiple Choice

Multiple compounding (PV) : Joan Alexander wants to go on a cruise in three years. She could earn 8.2 percent compounded monthly in an account if she were to deposit the money today. She needs to have $10,000 in three years. How much will she have to deposit today? (Round to the nearest dollar.)

• A) $6,432
• B) $7,826
• C) $8,148
• D) $7,763

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Definitions:

Unocal v. Mesa Petroleum

A landmark legal case that established important principles in the area of corporate takeover defense and directors' fiduciary duties.

Business Judgment Rule

A principle that protects corporate executives from liability for decisions made in good faith and believed to be in the best interest of the company.

Stakeholders

Individuals or groups that have an interest or stake in the performance and decisions of an organization, project, or outcome.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights within the company.