How Much More Interest Will Be Earned If $7,000 Is

question 320

Multiple Choice

How much more interest will be earned if $7,000 is invested for 9 years at an annual rate of 9% compounded continuously,instead of at 9% compounded quarterly? Round your answer to the nearest cent.

• A) $47.49
• B) $93.15
• C) $140.64
• D) $2,924.71
• E) $3,017.87

Understand the concept of accrued expenses and revenues and how to adjust for them.

Know the sequence for preparing financial statements.

Recognize the role and characteristics of the adjusted trial balance in the preparation of financial statements.

Recognize the importance and components of the post-closing trial balance.

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Definitions:

Sandstone

A sedimentary rock composed mainly of sand-sized minerals or rock grains.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas.

Magnitude 9.0

A measure on the Richter scale indicating an extremely powerful earthquake, capable of causing widespread destruction and significant alteration of the Earth's surface.

Lava Rock

A volcanic rock formed from the cooling and solidification of molten lava.