Solve. -How Much Would an Initial Bank Deposit Need to Be

question 171

Multiple Choice

Solve.
-How much would an initial bank deposit need to be in order to earn $2300 at 10% for 8 years? (Round to the nearest dollar.)

• A) $29
• B) $184,000
• C) $1840
• D) $2875

---

Definitions:

Common Shares

Equity securities that represent ownership in a corporation, granting voting rights and a share in the company's profits through dividends.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee, but not full control.

Straight Line Amortization

A method of allocation of an asset's cost over its useful life in equal annual amounts.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.