Question
1)A construction firm has a contract that has $10,000 due today, January 1, and then requires a payment of $5,000 at the end of the
1)A construction firm has a contract that has $10,000 due today, January 1, and then requires a payment of $5,000 at the end of the year and $15,000 at the end of the second year. Assuming that all funds can be invested to earn a return of 6%, how much will the contract be worth at the end of the second year?
a.$30,000
b.$31,236
c.$31,536
d.$33,483
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Integrated Accounting
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
8th edition
1285462726, 1285462721, 978-1285462721
