Evaluate Round Dollar Amounts to the Nearest Cent and Other

question 31

Multiple Choice

Evaluate. Round dollar amounts to the nearest cent and other answers to the nearest thousandth when necessary.
- $$\mathrm { P } \left( 1 + \frac { \mathrm { r } } { \mathrm { k } } \right) ^ { \mathrm { kn } } \text { for } \mathrm { P } = \$ 14,000 , \mathrm { n } = 12 , \mathrm { r } = 5 \% , \mathrm { k } = 2$$

• A) $25,141.99
• B) $24,704.55
• C) $11,322.16
• D) $25,322.16

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Definitions:

Credit

A form of financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, typically with interest.

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.