What Will Be the Value in One Year of $25

question 62

Multiple Choice

What will be the value in one year of $25 invested today at an annual interest rate of 5 percent?

• A)$25
• B)$26.25
• C)$27.50
• D)$30
• E)$23.81

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Definitions:

Accounts Receivable

The amount due to a company from its clients for goods or services that have been dispatched or consumed, but payment has not been received.

Capital

The assets, including money, that a person or organization possesses or has available for specific uses like launching a business or making investments.

Cash

Represents money or any instrument that banks accept for deposit and immediate credit to a company’s account, such as checks or money orders.