Use This Information to Answer the Following Question

question 61

Multiple Choice

Use this information to answer the following question. If an accumulation of $16,000 is desired at the end of three years,what amount must be deposited at the end of each of the three years,assuming an APR of 12 percent?

• A)$4,742.15
• B)$53,984.00
• C)$11,387.90
• D)$22,480.00

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Definitions:

Projects

Specific, planned activities with defined goals and objectives, undertaken to achieve a desired outcome.

CCA Class

Stands for Capital Cost Allowance Class, a categorization in tax systems for depreciation of assets for tax purposes.

Pre-tax Cost Reduction

A reduction in expenses that occurs before taxes have been applied, aimed at improving a company's profitability.

Tax Bracket

A range of income amounts that are taxed at a particular rate. Tax brackets result in higher income being taxed at higher rates.