Janet Plans on Saving $3,000 a Year and Expects to Earn

question 44

Multiple Choice

Janet plans on saving $3,000 a year and expects to earn 8.5%. How much will Janet have at the end of twenty-five years if she earns what she expects?

• A) $219,317.82
• B) $230,702.57
• C) $236,003.38
• D) $244,868.92
• E) $256,063.66

---

Definitions:

Adjusting Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Interest Owed

The amount of interest that has been incurred but not yet paid over a specific period.

Overstatement

This refers to the act of reporting a figure in financial statements that is higher than the actual or true value.

Unearned Rent

Refers to the amount received by a landlord for rent which has not yet been earned because the rental period has not occurred.