Use This Information to Answer the Following Question If $100 Is Invested, How Much Will It Grow to

question 55

Multiple Choice

Use this information to answer the following question. $\begin{array}{|c|c|c|}\hline \text { Periods } & \text { Present Value of } \$ 1 \text { at } 7 \text { Percent } & \begin{array}{c}\text { Present Value of Ordinary Annuity of } \$ 1 \\\text { at } 7 \text { Percent }\end{array} \\\hline 1 & 0.935 & 0.935 \\\hline 2 & 0.873 & 1.808 \\\hline 3 & 0.816 & 2.624 \\\hline\end{array}$
If $100 is invested, how much will it grow to at the end of the three years?

• A) $100 \(\times\) .935 \(\times\) 3
• B) $100 ÷ .816
• C) ($100 ÷ 2.624) \(\times\) 3
• D) $100 \(\times\) 2.624

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output.

Monthly Sales Volume

The total amount of a product or service sold by a company within the span of a month.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance.

Monthly Sales Volume

The total quantity of products or services sold by a company in a month.