The Amount You Must Deposit Now in Your Savings Account

question 48

Multiple Choice

The amount you must deposit now in your savings account paying 5% interest in order to accumulate $10000 for your first tuition payment when you start college in 3 years is

• A) $8500.
• B) $7830.
• C) $8638.
• D) $8860.

---

Definitions:

Production Costs

The total expenses incurred in manufacturing a product, including raw materials, labor, and overhead costs.

Disbursements Section

Part of financial statements or reports that details the outflow of cash or cash equivalents, often within the context of operating, investing, and financing activities.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow effectively.

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.