To Save for the Replacement of a Computer, a Business

question 33

Multiple Choice

To save for the replacement of a computer, a business deposits $300 at the end of each month into an account that earns 5% annual interest compounded monthly. Find the future value of the ordinary annuity in 4 years.

• A)$15922.70
• B)$15936.42
• C)$15832.05
• D)$15904.47
• E)$15931.84

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Definitions:

Preventive Maintenance

Maintenance activities carried out regularly on equipment to prevent unexpected failures.

Performance Capabilities

The ability of a company or product to function effectively, often measured against predetermined standards or competitor offerings.

Value-Based Pricing

A pricing strategy where prices are set primarily based on the perceived value to the customer rather than based on the cost of the product or historical prices.

Desired Return

Desired return refers to the expected financial gain or profit an investor aims to achieve from an investment over a specific period.