If a Married Couple Invests $900 in a 1-Year Certificate

question 117

Multiple Choice

If a married couple invests $900 in a 1-year certificate of deposit at 6% annual interest, compounded daily, how much interest will be earned during the year?

• A)$56.45
• B)$38.95
• C)$56.05
• D)$56.65
• E)$55.65

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Depreciable Cost

The total amount that can be depreciated over an asset's useful life, typically the cost of the asset minus its salvage value.

Obsolescence

The process of becoming outdated or no longer used, often due to technological advancements or changes in preferences.

Loss

A financial condition indicating that expenses have exceeded revenues over a certain period, leading to negative profit.