How Much Would $100, Growing at 5% Per Year, Be

question 88

Multiple Choice

How much would $100, growing at 5% per year, be worth after 75 years?

• A) $3,689.11
• B) $3,883.27
• C) $4,077.43
• D) $4,281.30
• E) $4,495.37

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Definitions:

Periodic Inventory System

An inventory accounting system where physical inventory counts are conducted at specific intervals to determine the cost of goods sold.

First-In, First-Out

A rephrased definition of FIFO; it's a method of stock valuation assuming that the oldest inventory items are used or sold first.

Lower of Cost or Market

Accounting principle where inventory is stated at the lower value between its original cost and current market price.

Inventory Item

A specific product or material that a company holds in stock with the intent to sell or use in the production process.