The Balance of a Savings Account T Months Since It

question 30

Multiple Choice

The balance of a savings account t months since it was opened depends on the APR.If the APR is A, expressed as a decimal, then the balance is given by . ​
What is the balance after 8.00 years if the APR is 6.00 percent? (Be sure first to express the APR as a decimal.)
​

• A) $161923.43
• B) $10198.15
• C) $6575.19
• D) None of the above

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Definitions:

Cash Operating Costs

Expenses directly associated with the operation of a business that require cash outlay, including rent, utilities, and payroll.

Useful Life

The estimated duration of time an asset is expected to be economically useful to an entity.

Simple Rate

A basic interest rate or return percentage applied to an investment or loan without compounding over a specific period.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.