-Thomas Young Invested $15,000 at 10% Annual Interest and Left

question 8

Multiple Choice

-Thomas Young invested $15,000 at 10% annual interest and left the money invested without withdrawing any of the interest for 15 years. At the end of the 15 years, Thomas decided to withdraw the accumulated amount of money. Thomas has found the following values in various tables related to the time value of money. To the closest dollar, which amount would he withdraw, assuming that the investment earns interest compounded annually?

• A) $18,591
• B) $114,091
• C) $47,659
• D) $62,659

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Definitions:

Variable Overhead Efficiency Variance

This is the difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate per hour.

Supplies Cost

The cost associated with materials and items that are consumed or used in the process of producing goods or providing services.

Machine-Hours

A measure of production output or capacity based on the number of hours a machine operates.

Variable Overhead Rate Variance

represents the difference between the actual variable overhead incurred and the standard variable overhead allocated for the actual production achieved.