You Have Purchased a Guaranteed Investment Contract (GIC) from an Insurance

question 35

Multiple Choice

You have purchased a Guaranteed Investment contract (GIC) from an insurance firm that promises to pay you a 5% compound rate of return per year for 6 years. If you pay $10 000 for the GIC today and receive no interest along the way you will get ________ in 6 years (to the nearest dollar) .

• A)$12 565
• B)$13 000
• C)$13 401
• D)$13 676

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Definitions:

Work in Process Inventory

Inventory that includes the raw materials, labor, and overhead costs for products that are in the production process but not yet completed.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of non-direct labor, that cannot be directly tied to specific product units.

Insurance Expense

Insurance expense is the cost incurred by a company to obtain coverage against risks, reported as a non-operating expense.

Property Tax

Taxes levied by local governments based on the assessed value of real estate property owned.