$500 Is Deposited at the End of Every Three Months

question 27

Multiple Choice

$500 is deposited at the end of every three months into an account crediting interest at j₂ = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

• A)$3191.91
• B)$3400.96
• C)$6885.90
• D)$6886.94

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered or changed, which should not influence future business decisions.

Opportunity Costs

The value of the best alternative forgone in making any decision, representing the benefits that could have been received from that alternative.

Management

Management refers to the coordination and administration of tasks to achieve a goal, including planning, organizing, staffing, directing, and controlling organizational resources.

Consistency

In accounting, the principle that ensures financial statements are comparable across periods by applying the same accounting methods and policies.