How Much More Interest Will Be Earned on a $5000

question 20

Multiple Choice

How much more interest will be earned on a $5000 investment earning 6 percent compounded monthly over another investment paying the same rate but compounded annually for 10 years? (round your answer)

• A)$1020
• B)$120
• C)$102
• D)$98

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Definitions:

Balance Sheet Accounts

Accounts displayed on the balance sheet that represent the company's assets, liabilities, and ownership equity at a specific point in time.

Posting

The process of transferring journal entries to the ledger accounts in accounting.

Equality

The balance between the total debits and total credits in an account, ensuring that all financial transactions are properly recorded.

Debits And Credits

The two fundamental aspects of every financial transaction in double-entry bookkeeping, where debits must equal credits.