What Amount Should Be Deposited in a Bank Today to Grow

question 15

Multiple Choice

What amount should be deposited in a bank today to grow to $3,000 three years from today?

• A)$3,000 ÷ 0.751
• B)$3,000 × 0.909 × 3
• C)($3,000 × 0.909) + ($3,000 × 0.826) + ($3,000 × 0.751)
• D)$3,000 × 0.751

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Definitions:

Budgeted Cost

This refers to the predicted costs of goods, services, projects, or operations that are planned for a future period.

Merchandise Purchases Budget

An estimate detailing the amount of goods a company plans to purchase over a certain period to meet its sales and inventory needs.

Selling Expenses Budget

A financial plan estimating the costs associated with promoting, selling, and distributing a product or service for a future period.

Sales Budget

An estimate of the sales revenue a company aims to achieve in a certain period, often used for planning and performance evaluation purposes.