George Puts $200 into an Account When the Interest Rate

question 355

Multiple Choice

George puts $200 into an account when the interest rate is 8 percent. Later he checks his balance and finds that he has a balance of about $272.10. How many years did he wait to check his balance?

• A)3 years
• B)3.5 years
• C)4 years
• D)4.5 years

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Definitions:

Net Assets

The difference between total assets and total liabilities, representing the owner's or shareholders' equity in a company.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.

Selling Price

The amount of money for which a product is sold to the consumer.

Completed-Contract Method

An accounting strategy where revenue and expenses of a long-term project are deferred until the project is completed, at which point they are recognized in the fiscal period of completion.