The Amount You Must Deposit Now in Your Savings Account

question 49

Multiple Choice

The amount you must deposit now in your savings account paying 6% interest in order to accumulate $6000 for a down payment 5 years from now on a new car is

• A) $1200.
• B) $4484.
• C) $4477.
• D) $4200.

---

Definitions:

Contributed Capital

The total value of the cash and other assets received by a company from its shareholders in exchange for shares of stock.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, highlighting net profit or loss.

Accounting Records

Documents and books that keep track of all financial transactions of a company, forming the basis for financial statements.

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, showing the balances after adjusting entries have been made for accruals, deferrals, and other adjustments.