Use the Formula a = P(1 + Rt) to Find

question 41

Multiple Choice

Use the formula A = P(1 + rt) to find the indicated quantity.
-Allan borrowed $5500 from his father to buy a car. He repaid him after 10 months with interest of 5% per year. Find the total amount he repaid.

• A) $229.17
• B) $5775.00
• C) $5706.25
• D) $5729.17

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Definitions:

Collections

The act of receiving payments for bills or accounts receivable, often referring to efforts made to gather overdue payments.

Reconciling Items

Adjustments made to reconcile differences between two sets of records or accounts, often used in the context of comparing bank statements to internal records.

Journal Entry

Journal entry is the method by which financial transactions are recorded in an organization's accounting records, specifying the accounts affected and the direction (debit or credit) of the transaction.

Bank Statement

A monthly document provided by a bank detailing all transactions in an account, which can include deposits, withdrawals, service charges, and interest earned.