Sam's Semiconductors Produces Computer Chips,which It Sells for $10 Million

question 1

Multiple Choice

Sam's Semiconductors produces computer chips,which it sells for $10 million to Carl's Computer Company (CCC) .CCC's computers are sold for a total of $16 million.What is the value added of CCC?

• A)$6 million
• B)$10 million
• C)$16 million
• D)$26 million

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Definitions:

Borrow

To receive something of value with the promise to return it or its equivalent value at a later date.

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest on interest.

Monthly Contributions

Regular payments made into a financial scheme, savings, or investment plan every month.

Interest Earned

The amount of money gained as interest from an investment or savings over a period of time.