If You Put $100 into a Bank Account That Earns

question 11

Multiple Choice

If you put $100 into a bank account that earns 5 per cent interest per year,what is the formula you should use to determine the account's future value in one year?

• A) Future value equals the present value divided by the rate of interest.
• B) Future value equals the present value multiplied by the rate of interest.
• C) Future value equals the present value multiplied by one plus the rate of interest in decimals.
• D) All of these yield the same answer.

Explain the advantages and disadvantages of decentralization in organizations.

Understand the role and operational model of franchises within business ecosystems.

Determine the most appropriate transfer price approach under different scenarios.

Calculate divisional operating income.

---

Definitions:

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to a need for borrowing or using saved reserves.

Energy Prices

The cost of purchasing energy sources such as oil, gas, coal, and electricity, which can fluctuate based on demand, supply, geopolitical stability, and environmental policies.

Economic Contraction

A decline in national output as measured by GDP, often leading to higher unemployment and lower spending.

Multiplier Size

The ratio of change in the economic output to the initial change in spending or investment that brought it about, indicating the scale of impact on the economy.