After 2 Years, an Investment of $500 Compounded Annually at an Interest

question 64

Multiple Choice

After 2 years, an investment of $500 compounded annually at an interest rate r will yield an amount of $500 ( 1 + r ) ^ { 2 }.$ Write this polynomial in standard form.

• A)1,000 + 1,000r
• B)250,000 + 500,000r + 250,000r2
• C)500 + 1,000r + 500r2
• D)500r2 + 1,000r + 500
• E)500r2 + 500r + 500

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Definitions:

Unit Sales

The total number of individual items or units that a company sells.

Margin of Safety

The difference between actual sales and sales at the break-even point, indicating the risk level of not covering fixed costs.

Break-Even Sales

The sum of money needed to offset all constant and fluctuating expenses, achieving a financial break-even point with no gains or deficits.

Current Sales

The total revenue generated from sales activities in the most recent accounting period.