What Is the Future Value of $1,000, Placed in a Saving

question 58

Multiple Choice

What is the future value of $1,000, placed in a saving account for four years if the account pays 8%, compounded quarterly?

• A)$1,320.45
• B)$1,360.50
• C)$1,372.80
• D)None of the above

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Definitions:

Fixed Costs

Expenses that do not change significantly with the level of business activity, such as rent, salaries, and loan payments.

Variable Components

Elements of a product, service, or cost that fluctuate based on production levels or usage, as opposed to fixed components which remain constant.

Margin of Safety

The difference between actual or anticipated sales and the break-even point.

Unit Selling Price

The pricing of individual units of goods or services that a business offers for sale.