Solve the Problem $\$ 4,000$ Is Put Aside in a Money Market Account with Interest

question 74

Multiple Choice

Solve the problem.
-If $\$ 4,000$ is put aside in a money market account with interest compounded continuously at $3.1 \%$ , find the time required for the account to earn $\$ 1000$ . Round to the nearest month.

• A) \(7 \mathrm { yr } , 10\) months
• B) \(5 \mathrm { yr } , 11\) months
• C) \(8 \mathrm { yr } , 2\) months
• D) \(7 \mathrm { yr } , 2 \mathrm { months }\)

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Definitions:

Sales

The activities involved in selling goods or services to customers, including negotiation, closing deals, and transaction processing.

Asset Turnover

A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.

Sales Revenue

The gross revenue is the entirety of income that comes from selling products or services, prior to deducting any costs.

Total Invested Capital

The sum of a company's equity and debt capital, representing the total amount of capital invested in the business.