Your Goal Is to Accumulate in 4 Years $5,000

question 32

Multiple Choice

Your goal is to accumulate in 4 years $5,000.If you can earn a rate of 4%, compounded monthly, what will be your end of month monthly payment need to be to reach this goal?

• A)$96
• B)$104
• C)$124
• D)$262
• E)$300

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Definitions:

Revenues

The overall income earned from transactions of goods or services central to a business's core functions.

Operating Revenues

The income earned from a company's main business operations, excluding income from investments or secondary sources.

Operating Expenses

The costs associated with the normal operations of a business, excluding costs related to producing goods or services, like rent, utilities, and salaries.

Interest Expense

The cost incurred by a company for borrowed funds, shown as an expense on the income statement.