The Future Value Three Years from Today of a $100

question 62

Multiple Choice

The future value three years from today of a $100 three-year annuity due compounded at a rate of 10% is equal to ________.

• A)$300.00
• B)$331.00
• C)$364.10
• D)$133.10

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Definitions:

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.

Economic Profits

Profits that exceed both the explicit and implicit costs of a business, including a normal return on investment.

Differentiate Products

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Interindustry Competition

The competition for sales between the products of one industry and the products of another industry.