Items 65 Through 68 Apply to the Appropriate Use of Interest

question 95

Multiple Choice

Items 65 through 68 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 65 to 68 is based on 8% interest compounded annually.

-If $5,000 is deposited in a savings account today, what amount will be available three years from today?

• A) $5,000 ÷ 1.260
• B) $5,000 × 1.260
• C) $5,000 × 1.080 × 3
• D) ($5,000 × 1.080) + ($5,000 × 1.166) + ($5,000 × 1.260)

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Definitions:

Reducing Cost

The process or strategy of lowering expenses in business operations, personal finance, or public spending without compromising on the quality of goods and services.

Social Media Use

The engagement with online platforms where users create, share, or exchange information and ideas in virtual communities.

Growth

The process of increasing in physical size, intellectual development, or emotional maturity.

Past Five Years

The period extending back from the current date to the same calendar date five years prior.