Use the Compound Interest Formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$$

question 71

Multiple Choice

Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$$ and A = Pert to solve.
-Find the accumulated value of an investment of $1800 at 8% compounded quarterly for 2 years.

• A) $1872.72
• B) $2099.52
• C) $2088.00
• D) $2108.99

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Definitions:

Controllable Margin

The portion of profit or income that can be directly influenced by managing decisions, excluding fixed costs and other unchangeable expenses.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, such as equipment, inventory, and property.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit earned on the investment by the cost of the investment.

Minimum Rate

The lowest acceptable or allowable rate, often referring to wages, interest rates, or other financial variables.