Which of the Following Has the Highest Future Value

question 161

Multiple Choice

Which of the following has the highest future value?

• A)$100 saved for 2 years at 10 percent interest
• B)$110 saved for 2 years at 9 percent interest
• C)$120 saved for 2 years at 8 percent interest
• D)$130 saved for 2 years at 7 percent interest

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Definitions:

Fixed Cost

Expenses that do not change in proportion to the volume of goods or services a company produces, such as rent, salaries, and insurance premiums.

Product Cost

The total cost associated with making or acquiring a product, including direct materials, direct labor, and overhead.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.