Your Retirement Account Has a Current Balance of $50,000

question 59

Multiple Choice

Your retirement account has a current balance of $50,000.What interest rate would need to be earned in order to accumulate a total of $1,000,000 in 30 years, by adding $6,000 annually?

• A)5.02 percent
• B)7.24 percent
• C)9.80 percent
• D)10.07 percent

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries of support staff.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operated.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products based on a certain activity, such as labor hours or machine hours.

Machine-Hours

A measure of the amount of time that a machine is operating, used as a basis for allocating manufacturing overhead costs.