Calculate the Accumulated Value of Monthly Payments of $100

question 78

Multiple Choice

Calculate the accumulated value of monthly payments of $100.00 made at the end of each month for ten years just after the last payment has been made if interest is 12% p.a. compounded monthly.

• A) $23 003.87
• B) $33 003.87
• C) $12 000
• D) $1 046.22
• E) $330 003.87

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Definitions:

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

IRR

Utilized in assessing investment opportunities within capital budgeting, the Internal Rate of Return signifies the estimated profit rate of future investments.

Conflict Resolved

A situation wherein a disagreement, dispute, or discord has been successfully addressed, negotiated, and settled among parties involved.

Cost of Capital

The necessary yield on investment initiatives for a business to uphold its market price and appeal to investors.