Assume That $1,500 Is Deposited in an Account in Which

question 220

Multiple Choice

Assume that $1,500 is deposited in an account in which interest is compounded annually at a rate of 8%.Find the accumulated amount after 14 years rounded to the nearest cent.

• A)$4,805.79
• B)$4,505.79
• C)$4,355.79
• D)$4,305.79
• E)$4,405.79

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, like cash, inventory, and receivables.

Total Assets

The sum of all resources owned by an entity, including both current and non-current assets, which can be used to generate value or meet obligations.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Leverage

The use of borrowed capital (debt) or other financial instruments to increase the potential return of an investment.