If the Current Rate of Interest Is 8% APR,then the Future

question 27

Multiple Choice

If the current rate of interest is 8% APR,then the future value of an investment that pays $500 every two years and lasts 20 years is closest to:

• A)$11,000.
• B)$10,661.
• C)$22,881.
• D)$20,000.

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Definitions:

Liabilities

Liabilities are financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a previously made adjusting entry.

Salaries Expense

The total amount of salary payments owed to employees for work performed during a specific period.

Salaries Payable

An account that records amounts owed to employees for work performed but not yet paid, a liability on the balance sheet.