Find the Compound Interest Earned

question 18

Multiple Choice

Find the compound interest earned. Round to the nearest cent. Do not use an interest table.
-$5,000 at 7% compounded annually for 4 years

• A)$1,553.98
• B)$1,400.00
• C)$1,125.22
• D)$351.50

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Definitions:

Variable Overhead Standards

The predetermined costs associated with variable overheads that are expected to be incurred under normal operating conditions.

Direct Labor-hours

The total hours worked directly on manufacturing a product or providing a service, used as a basis for allocating labor costs in product costing.

Quantity Standard

Pre-determined measure set for the amount of input that should be used in producing a unit of output.

Standard Cost System

A cost accounting system that uses estimated costs for inventories and cost of goods sold rather than historical costs, facilitating budgeting and variance analysis.