If You Invest $5,000 in a Mutual Fund with a Total

question 128

Multiple Choice

If you invest $5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year,what will be the value of your investment after five years?

• A) $3,402.92
• B) $6,597.08
• C) $7,000.00
• D) $7,346.64

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Definitions:

Asset Section

A part of a financial statement that lists all the assets owned by an individual or organization.

Services Revenue

Income generated from services provided by a company rather than from selling physical goods.

Going Concern Assumption

The accounting principle that assumes a company will continue to operate in the foreseeable future, and not liquidate its assets.

Accounting Information

Data related to financial transactions and status of a business, used for analysis, planning, and decision-making purposes.