Find the Amount of Money in an Account After 5

question 6

Multiple Choice

Find the amount of money in an account after 5 years if $2800 is deposited at 7% annual interest compounded monthly.

• A) $3969.35
• B) $3961.38
• C) $3949.68
• D) $3927.14

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Definitions:

Sales Discounts

A reduction in the price of goods or services offered to a customer, intended to encourage prompt payment or increase sales.

Adjusting Entry

An accounting entry made into a company's general ledger at the end of an accounting period to record any unrecognized income or expenses for the period.

Physical Inventory

The process of counting the actual goods or materials a business holds in stock as a way to verify stock levels and value.

Estimated Returns Inventory

The projection of goods that are expected to be returned by customers within a specific period, considered in inventory and financial planning.