Compute the Present Value (Principal) and the Compound Interest Earned

question 1

Short Answer

Compute the present value (principal) and the compound interest earned for each of the following investments. Use Tables 16-1A&B or 16-2A&B or a calculator.
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Definitions:

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.