Suppose That You Placed $500 in a Bank Account at the End

question 79

Multiple Choice

Suppose that you placed $500 in a bank account at the end of each year for the next 10 years.How much would be in that account at the end of the tenth year if the deposits earned an annual rate of return of 8% each year?

• A)$8,079.46
• B)$5,400.00
• C)$7,243.28
• D)$6,355.04
• E)$7,774.51

---

Definitions:

Net 30 Credit Policy

A credit term that allows a customer 30 days to pay the invoice in full from the invoice date.

Monthly Interest Rate

The percentage of interest that is charged or earned on an amount of money over a month.

Variable Cost

Expenses that change in proportion to the amount of goods or services produced.

Net Present Value

An investment's difference between the present value of cash inflows and the present value of cash outflows over time.