For the 2002 Fiscal Year, Lowe's Companies, Inc

Multiple Choice

For the 2002 fiscal year, Lowe's Companies, Inc., reported an annual net income of $1.023 billion. Assume the income can be reinvested continuously at an annual rate of return of 9.0% compounded continuously. Also assume that Lowe's will maintain this annual net income for the next 7 years. What is the future value of its 7-year net income? Round your answer to three decimal places.

A) $5.313 billion
B) $7.644 billion
C) $22.345 billion
D) $9.976 billion
E) $4.663 billion