If Your Bank Pays You Interest in the Form of an Annual

question 45

Multiple Choice

If your bank pays you interest in the form of an annual rate of return of 10% over each of the next five years,how much will your balance be if you make annual deposits of $400?

• A)$2,248.37
• B)$2,644.20
• C)$2,516.31
• D)$2,442.04

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Definitions:

Reportable

Refers to information or events that must be disclosed or reported to regulatory authorities or in financial statements according to legal or regulatory requirements.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a set of accounting rules and standards used for financial reporting.

Major Customer

A client who contributes a significant portion of a company's revenue, often crucial to the company's financial health.

Operating Segments

Components of a business for which separate financial information is available and regularly evaluated by the company's decision-makers in deciding how to allocate resources and assess performance.