Clarence Has Been Investing $1,000 at the End of Every

question 172

Multiple Choice

Clarence has been investing $1,000 at the end of every year at 11% compounded annually. With today's contribution his investment has grown to $44,500. How many years ago did he make the first contribution?

• A) 26 years
• B) 49 years
• C) 17 years
• D) 31 years
• E) 12 years

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Definitions:

Sales Potential

An estimate of the maximum total revenue a product or service can generate under ideal conditions.

Business Owners

Individuals who legally possess a company or business, bearing the risks and enjoying the benefits of the entity's operations.

Business Liquidations

The process of closing a business and distributing its assets to claimants, often due to insolvency or inability to continue operations.

Prospective Buyers

Potential customers who have shown an interest in purchasing a product or service but have not yet made the purchase.