If $1000 Is Invested for 2 Years at 6% Compounded

question 31

Multiple Choice

If $1000 is invested for 2 years at 6% compounded quarterly,then the compound amount at the end of the period is

• A) $1120.00.
• B) $1123.60.
• C) $1126.49.
• D) $1141.23.
• E) $1593.84.

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Definitions:

Merchandise Inventory

Goods that a business intends to sell to customers for a profit.

Days' Sales

An analysis technique used to estimate the average time it takes for a company to collect cash from sales.

Uncollected Ratio

Indicates the proportion of receivables that a company has not yet received payment for, typically represented as a percentage of total receivables.

Petty Cash Fund

A small amount of cash on hand used for paying minor expenses to avoid writing checks for small amounts.