If I Can Invest a Dollar Today and Earn Interest

question 56

Multiple Choice

If I can invest a dollar today and earn interest on it, then it should be worth _________ in the future.

• A) Less
• B) The same as
• C) More
• D) Either less or the same as
• E) Either the same as or more

---

Definitions:

Net Income

The total revenue of a business minus total expenses, indicating the profit earned over a specific period.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life.

Double Declining-Balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Straight-Line Method

A technique for calculating an asset's depreciation by uniformly distributing its cost throughout its anticipated lifespan.