The Future Value of a Deposit in a Savings Account

question 181

Multiple Choice

The future value of a deposit in a savings account will be larger

• A)the longer a person waits to withdraw the funds.
• B)the higher the interest rate is.
• C)the larger the initial deposit is.
• D)All of the above are correct.

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Definitions:

Operating Activities

Operating activities are the day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its earnings.

Noncash Financing

Financing activities that do not involve cash flows, such as issuing stock for assets or converting debt to equity.

Investing Activities

Financial transactions related to the acquisition or sale of long-term assets and investments not related to the entity's primary business operations.

Financing Activities

Transactions and events where cash is raised or paid back to finance the company's operations, including issuing debt, equity, and paying dividends.