How Much Would $30,000 Due in 50 Years Be Worth

question 39

Multiple Choice

How much would $30,000 due in 50 years be worth today if the discount rate were 7.5%?

• A) $838.94
• B) $959.94
• C) $621.14
• D) $806.67
• E) $613.07

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Definitions:

Financing Activities

Transactions and events where a company either raises funds through borrowing or repaying debt, or issuing and repurchasing its own shares, as seen in the cash flow statement.

Retained Earnings

The amount of net income retained in the corporation.

Cash Dividends

Distributions of profits by a company to its shareholders in the form of cash.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.