If an Amount $AAA Today Earns Interest at a Rate

question 60

Multiple Choice

If an amount $AAA today earns interest at a rate of i percent per year, then the accumulated amount at the end of n years will be

• A)$AAA × n × i.
• B)$AAA × in.
• C)($AAA)n × (1 + i).
• D)$AAA × (1 + i)n.

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Definitions:

Investing Human Capital

The process of improving the workforce's skills and knowledge through education, training, and experience to enhance productivity and economic value.

Present Discounted Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in time value of money calculations.

Direct Costs

Expenses that can be directly traced to the production of a specific good or service, such as materials and labor.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, measuring the firm's overall financial performance.