What Is the Future Value of $800 One Year from Today

question 197

Multiple Choice

What is the future value of $800 one year from today if the interest rate is 7 percent?

• A)$747.66
• B)$756.00
• C)$856.00
• D)None of the above are correct to the nearest cent.

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Definitions:

Periodic system

An inventory valuation method where updates to inventory records are made on a periodic basis, usually at the end of an accounting period.

Beginning inventory

The value of a company's inventory at the start of an accounting period.

Perpetual inventory system

An inventory system that keeps continuous, real-time records of goods bought and sold, updating inventory accounts without physical counts.

Journal entry

A record in accounting that documents a business transaction and its impact on the company's accounts, using debits and credits.