If You Make 30 Semi-Annual Deposits of $2,000 into a Fund

question 51

Multiple Choice

If you make 30 semi-annual deposits of $2,000 into a fund that earns 10% compounded quarterly, how much money will be in the fund two years after the last deposit?

• A) $172,275.22
• B) $171,931.59
• C) $209,481.94
• D) $199,387.93
• E) $163,646.96

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Definitions:

Traditional Costing Method

A cost accounting method that assigns overhead costs to products based on a predetermined overhead rate.

Direct Labor-Hours

A measure representing the total hours worked by employees directly involved in the production of goods or services.

Unit Product Cost

Unit product cost is the total expense incurred to produce, store, and sell one unit of a product.

Overhead Applied

The allocation of overhead costs to specific jobs or production units based on a predetermined rate or method.