A Student Wishes to Accumulate $4000 by Making Quarterly Deposits

question 58

Multiple Choice

A student wishes to accumulate $4000 by making quarterly deposits of $200 into an account,first deposit made on January 1,2011.The account earns interest at j₄ = 6%.What is the size of the final,smaller quarterly deposit (drop payment) and on what date will this final deposit be made?

• A)A final deposit of $159.73 is made on July 1,2015
• B)A final deposit of $102.12 is made on July 1,2015
• C)A final deposit of $159.73 is made on April 1,2015
• D)A final deposit of $102.12 is made on April 1,2015

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Definitions:

Departments

Divisions within an organization, each focusing on a specific area of function, such as sales or human resources.

Products

Products are items or services created through a process and made available for consumer purchase or use, serving identified market needs or desires.

Production Department

A unit or section within a company responsible for the actual production of goods or services.

Plantwide Factory Overhead Rates

These rates are applied uniformly across all production activities in a plant to allocate indirect costs to products.