You Invest $10 000 at 5% Interest Rate Compounded Monthly

question 44

Multiple Choice

You invest $10 000 at 5% interest rate compounded monthly, what is your accumulated interest at the end of year 2?

• A)$511.62
• B)$537.79
• C)$1 025.00
• D)$1 049.41
• E)$1 089.41

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Depreciation

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Original Cost

The initial purchase price or cost of acquiring an asset, before any depreciation or amortization.

Accounting Period

A specific period of time in which financial transactions are recorded and financial statements are prepared.