You Invested $1,200 Three Years Ago

question 109

Multiple Choice

You invested $1,200 three years ago.During the three years,you earned annual rates of return of 4.8%,9.2%,and 11.6%.What is the value of this investment today?

• A) $1,498.08
• B) $1,512.11
• C) $1,532.60
• D) $1,549.19

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Definitions:

Net Operating Income

A company's income after operating expenses have been deducted but before deducting interest expenses and taxes.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much of sales revenue is available to cover fixed costs and generate profit.

Target Profit

The desired level of financial gain set by a business for a specific period, guiding pricing strategies and operational decisions.

Monthly Fixed Expense

Expenses that do not change month to month, regardless of business activity, such as rent or salaries.