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Peter Invests $100,000 in a 3-Year Certificate of Deposit Earning

question 64

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Peter invests $100,000 in a 3-year certificate of deposit earning 3.5% at his local bank. Which time value concept would be used to determine the maturity value of the certificate?


Definitions:

Retirement Entry

An accounting entry that records the removal of fixed assets or inventory from the company's records upon their disposal or sale.

Discount On Bonds Payable

The difference between the face value of a bond and its selling price when a bond is sold for less than its face value.

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