Use Compound Interest Formulas
Use the Compound Interest Formulas A A =

question 213

Multiple Choice

Use Compound Interest Formulas
Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) \text { and } A = P e ^ { r t } \text { to solve }$$
-Find the accumulated value of an investment of $5000 at 5% compounded monthly for 8 years.

• A)$7452.93
• B)$12,911.25
• C)$9093.60
• D)$8060.16

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Definitions:

Direct Method

A costing method that assigns service departments' costs directly to production departments without going through multiple allocations.

Administrative Department

A division within a company responsible for overseeing and providing essential support services such as finance, HR, and clerical work.

Employee Hours

The total number of hours worked by all employees within a specific period, often used for productivity analysis and labor costing.

Direct Method

In cost accounting, a technique that allocates service department costs directly to producing departments without considering any services rendered between service departments.