If You Deposit $250 Each Quarter in a Bank Account

question 100

Multiple Choice

If you deposit $250 each quarter in a bank account that pays interest at 16% compounded quarterly, how much will you have at the end of five years?

• A)$3397.58
• B)$1354.08
• C)$7444.53
• D)$6074.25

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Definitions:

Wholesaler

An intermediary entity in the distribution channel that buys goods in bulk from manufacturers and sells them to retailers or other businesses, but not directly to consumers.

Contra Account

A contra account is an account used in the general ledger to reduce the value of a related account when the two are netted together.

Accumulated Depreciation

The total amount of a company's asset value that has been allocated as depreciation expense since the asset was put into use.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.