Solve the Problem. -Find the Amount of Interest Earned on the Following Deposit

question 201

Multiple Choice

Solve the problem.
-Find the amount of interest earned on the following deposit: $1,000 at 9% compounded annually for 4 years

• A) $295.03
• B) $538.62
• C) $411.58
• D) $1411.58

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit but not yet paid.

Rent Expense

An expense incurred by a company for the use of a property or equipment.

Repair and Maintenance

Expenses incurred to keep an asset in working condition or to restore it to its desired condition, which do not extend the asset's useful life significantly.

Bank Loan Payable

A financial obligation representing money borrowed from a bank that a company is required to pay back with interest by a specified future date.