What Is the Future Value of a $10,000 College Tuition

question 105

Multiple Choice

What is the future value of a $10,000 college tuition fund if the nominal rate of interest is 12 percent compounded monthly for five years?

• A) $17,623.42
• B) $18,170
• C) $16,105.10
• D) $16,122.26

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Definitions:

Recording Process

The systematic method of capturing and documenting financial transactions and events in the accounting records of an organization.

Trial Balance

A bookkeeping worksheet listing the balance of all ledgers in two columns, debits and credits, used to ensure that the sum of debits equals the sum of credits.

Journal

A comprehensive listing documenting all monetary transactions of a company, first noted before being moved to the general ledger accounts.

Ledger Accounts

Individual financial records within the ledger that capture all transactions related to a specific asset, liability, equity, revenue, or expense.