Mike Is Supposed to Pay $750 to Sarah, but Wishes

question 277

Multiple Choice

Mike is supposed to pay $750 to Sarah, but wishes to delay it for 48 days. Determine the amount Sarah should expect in 48 days if the rate of interest is 6.55%

• A) $756.46
• B) $765.66
• C) $771.55
• D) $793.12
• E) $795.61

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Definitions:

Budgeting

The process of creating a financial plan or forecast for a specific period, detailing expected revenues and expenditures.

Employee Salaries

Fixed payments made to employees for their services over a specified period, typically monthly or bi-monthly.

Budgeting

The process of creating a financial plan to manage revenue and expenses for a specific period, often key to strategic planning in businesses and personal finance management.

Activity Variance

The difference between the budgeted amount of an activity and the actual amount incurred.