If You Deposit $100 into an Account That Pays $5 \%$

question 2

Short Answer

If you deposit $100 into an account that pays $5 \%$ APR compounded monthly, what would be the value in the account after 30 years? $\$$$\underline{\quad\quad}$

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Definitions:

Allowance Method

An accounting technique used to estimate and account for bad debts or credit losses.

Uncollectible Accounts Expense

This refers to the expense recorded by a business to cover debts that are not expected to be collected due to customers being unable to pay.

Allowance for Doubtful Accounts

A method used in accounting to estimate the portion of accounts receivable that may not be collected.

Contra Asset

An account that is used to reduce the value of a related asset, such as accumulated depreciation reducing the book value of fixed assets.