To Calculate the Future Value of an Amount That Is

question 78

Multiple Choice

To calculate the future value of an amount that is invested at 12%,compounded quarterly,at the end of three years,the interest factor used would be

• A)1% for 12 periods.
• B)3% for four periods.
• C)3% for 12 periods.
• D)12% for three periods.

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Definitions:

Amortized Cost

The method of accounting for the gradual reduction in the cost value of an intangible asset or a loan through periodic charges to income over its useful life or term.

Equity Securities

Financial instruments representing ownership in a corporation, entity, or assets, such as stocks.

Short Period

A brief duration of time, particularly in accounting or financial contexts, often referring to less than one fiscal year.

Designated

Usually refers to something that has been officially assigned a particular status, role, or purpose.