Last Semester a Class Gave a Teacher $810 to Fly

question 80

Multiple Choice

Last semester a class gave a teacher $810 to fly to Bali. However, he decided not to go until he had enough money to fly back, an additional $690. If he invests the $810 at 8%, when can he make the trip, assuming no change in ticket prices?

• A) 8 years
• B) 6 years
• C) 4 years
• D) 2 years

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Definitions:

Fixed Expenses

Fixed expenses are costs that do not vary with the level of production or sales, providing stability to a company's budget, such as rent or insurance.

Operating Period

The time frame during which a company conducts its principal operations, typically one year for most financial reporting.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.

Northern Division

This does not represent a universally recognized key term across business or accounting fields and could refer to a specific, non-generic division within a company.