How Much Would Be in Your Savings Account in 7

question 151

Multiple Choice

How much would be in your savings account in 7 years after depositing $100 today if the bank pays 5 percent interest per year?

• A) $135.00
• B) $140.71
• C) $735.00
• D) $814.20

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Definitions:

Prepaid Rent

An asset account that records rent payments made in advance for the use of property or space that hasn’t yet been incurred.

Adjusting Entry

An entry made in the journals to align the accounts with the true financial status by accounting for accrued or deferred items.

Net Income

A measure of profitability that calculates the total revenue minus total expenses, taxes, and costs.

Book Value

The net value of a company's assets, excluding intangible assets, as recorded on the balance sheet, often compared to the company's market value.