Calculate the Accumulated Value of Monthly Payments of $100

question 78

Multiple Choice

Calculate the accumulated value of monthly payments of $100.00 made at the end of each month for ten years just after the last payment has been made if interest is 12% p.a. compounded monthly.

• A) $23 003.87
• B) $33 003.87
• C) $12 000
• D) $1 046.22
• E) $330 003.87

---

Definitions:

Weighted-Average Method

An inventory costing method that assumes goods are interchangeable and calculates the cost of ending inventory and the cost of goods sold based on the average cost of all similar items.

Conversion Unit

A measure used in manufacturing to quantify the input needed to produce one unit of output, often considering labor and overhead.

First-In, First-Out

An inventory valuation method where the costs of the oldest inventory items are assigned to cost of goods sold first, leaving the most recently purchased items in inventory.

Conversion

The process of changing or causing something to change from one form to another, often used in the context of converting raw materials into finished goods.