Given an Interest Rate of 4%, What Amount Would You

question 186

Multiple Choice

Given an interest rate of 4%, what amount would you have to invest today to end up with $ 1,000 one year from now?

• A) $ 250
• B) $ 961.54
• C) $ 925.93
• D) Additional information is required to complete the calculation.

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Definitions:

Voucher Payment

A method of payment that involves creating a voucher or document detailing the payable amount to a vendor or supplier.

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Normal Balance

The side of the account (debit or credit) on which increases to the account are recorded.