(Table: Account Balance) Using an Interest Rate of 5

question 24

Multiple Choice

(Table: Account Balance) Using an interest rate of 5%, the value of the savings account balance in year five is $____.

• A) 7,835.26
• B) 12,500
• C) 12,762.82
• D) 16,105.10

---

Definitions:

Earnings Before Interest

An indicator of a company's profitability calculated by subtracting all expenses except interest from revenues, commonly referred to as EBIT.

Tax (EBIT)

Taxation calculated on Earnings Before Interest and Taxes, representing the income tax expense charged on a company's operating profit.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.

Percentage Change

A mathematical calculation that expresses the degree of change over time as a percentage.