How Much Interest Will Be Earned in the Next Year

question 106

Multiple Choice

How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest?

• A) $88
• B) $100
• C) $112
• D) $200

---

Definitions:

Standard Quantity

This refers to the predefined amount of materials or labor deemed necessary to produce a single unit of a product under normal operations.

Actual Quantity

The real number of units used or produced, as opposed to planned or estimated quantities.

Overhead Budget

An estimation of all overhead costs for a period, helping businesses plan how much they need to spend on indirect costs.

Budgeted Overhead Cost

The forecasted or estimated costs of overhead that a company plans to incur over a period, factored into its budgeting process.