Determine the Balance a ( to the Nearest Cent)for P=500

question 88

Multiple Choice

Determine the balance A ( to the nearest cent) for P=500 dollars invested at a rate r=7% for t=10 , compounded 12 times per year. Round the answer to two decimal places.

• A)$529.94
• B)$4,700.00
• C)$1,126.10
• D)$1,004.83
• E)$6,359.33

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Definitions:

Miller-Orr Model

A model used to manage cash balances by setting upper and lower limits on cash reserves, triggering transfers to optimize interest and liquidity.

Upper Limit

The maximum level or boundary allowed or possible, often used in the context of production, spending, or other types of limits.

Cash Concentration

A treasury management strategy where a company consolidates its cash balances into one account to optimize liquidity and manage its cash more efficiently.

Main Bank Account

The primary checking or savings account used by an individual or business for managing their daily financial transactions and cash flow.