An Individual Invests $12,000 at a Rate of 4% Per

question 52

Multiple Choice

An individual invests $12,000 at a rate of 4% per annum.What will be its value in 9 years' time?

• A)$15,000
• B)$15,853
• C)$16,289
• D)$18,000
• E)$17,080

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or output. These are often raw material and labor costs that increase or decrease with the volume of production.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the level of business activity.

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net profit or loss.