You own a contract that promises an annuity cash flow of $100 end-of-the-year cash flows for each of the next three years (note: the first cash flow is exactly one year from today)
At an interest rate of 10%, what is the future value of this contract exactly three years from today?
A) $248.69
B) $273.55
C) $331.00
D) $364.10
C
Explanation: C) Via Calculator: N = 3, I = 10, PMT = 100, Solve for FV =331.00.
You might also like to view...
Which of the following is the most important reason for an auditor to gain an understanding of an audit client's system of internal control over financial reporting?
a. Understanding a client's system of internal control can help the auditor asses risk and identify areas where financial statement misstatement might be more likely b. Understanding a client's system of internal control can help the auditor make valuable recommendations to management at the end of the engagement c. Understanding a client's system of internal control can help the auditor sell consulting services to the client d. Understanding a client's system of internal control is not a required part of the audit process
The wise arbitrator will bend over backward to permit evidence that may or may not be relevant
Indicate whether the statement is true or false