Assume the Cost of a Car Is $21,000

question 387

Multiple Choice

Assume the cost of a car is $21,000. With continuous compounding in effect, find the number of years it would take to double the cost of the car at an annual inflation rate of 6.2%. Round the answer to the nearest hundredth.

• A) 11.18 yr
• B) 160.52 yr
• C) 1.61 yr
• D) 171.70 yr

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Definitions:

FOB Shipping Point

is a term used in shipping, where the buyer becomes responsible for goods once they are shipped, and must pay for the transport costs.

Credit Memo

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Perpetual Inventory System

A technique in inventory management accounting that captures sales or purchases right away using computerized systems for point-of-sale and software for enterprise asset management.

Credit Card Fees

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