What Annual Interest Rate Is Required to Accumulate $6,802 $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$

question 13

Essay

What annual interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$
A)5%
B)8%
C)10%
D)12%
E)15%

• A)5%
• B)8%
• C)10%
• D)12%
• E)15%

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Definitions:

Accounts Payable

Accounts payable is the amount a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Inventory

Items and substances that a company stocks with the ultimate purpose of selling or further processing.

Perpetual Inventory System

A method of inventory management where inventory levels are updated in real-time after every sale or purchase transaction.