Solve the Problem. -Kimberly Invested $3000 in Her Savings Account for 7 Years

question 3

Multiple Choice

Solve the problem.
-Kimberly invested $3000 in her savings account for 7 years. When she withdrew it, she had $3779.58. Interest was compounded continuously. What was the interest rate on the account? Round to the nearest tenth of a percent.

• A)3.3%
• B)3.2%
• C)3.45%
• D)3.4%

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Definitions:

Denominator Level

The activity level used to compute a predetermined overhead rate, often reflecting capacity or expected usage.

Budget Variance

The difference between budgeted figures for a set period and the actual figures achieved.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual level of activity.

Unfavorable

A term used in budgeting and variance analysis to describe a situation where actual costs are higher than expected or budgeted costs.