Drexel Corporation has been enjoying a phenomenal rate of growth since its inception one year ago.Currently,its assets total $100,000.If growth continues at the current rate of 12% compounded quarterly,what will total assets be in 2 1/2 years? (Round to the nearest whole dollar)
A) $142,571
B) $126,678
C) $148,016
D) $136,855
E) $134,392

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc27_97d7_a768_e7b7a5d348f2_TB2902_00 FV = 100,000 × (1.03 11ea7fdb_fc27_bee8_a768_ff7e849bc57f_TB2902_00 = $134,391.64
Using a financial calculator:
N = 10, I/Y = 3, PV = -100,000, PMT = 0, cpt FV = $134,391.64

Drexel Corporation Has Been Enjoying a Phenomenal Rate of Growth