Use the Compound Interest Formula to Compute the Total Amount

question 5

Multiple Choice

Use the compound interest formula to compute the total amount accumulated.
-$1810 for 4 years at 2% compounded annually

• A) $1959.20
• B) $1920.79
• C) $1954.80
• D) $1918.60

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Paid-In Capital

Paid-In Capital is the amount of money investors have paid to a company in exchange for shares of its stock, reflecting the additional capital contributed by shareholders over the par value of the shares.

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily match the market value.