McGoff Company Deposits $20000 in a Fund at the End

question 16

Multiple Choice

McGoff Company deposits $20000 in a fund at the end of each year for 5 years. The fund pays interest of 4% compounded annually. The balance in the fund at the end of 5 years is computed by multiplying

• A) $20000 by the future value of 1 factor.
• B) $100000 by 1.04.
• C) $100000 by 1.20.
• D) $20000 by the future value of an annuity factor.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by a company, representing its overall value.

Cash Collection

The process of receiving and processing payments from customers, including cash, checks, and credit card payments.

Expense Accounts

Financial accounts used to track money spent or costs incurred in a company's operations.

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts.