Shane Wants to Invest Money in a 6% CD That

question 28

Multiple Choice

Shane wants to invest money in a 6% CD that compounds semiannually.Shane would like the account to have a balance of $100,000 four years from now.How much must Shane deposit to accomplish his goal?

• A)$88,848.
• B)$78,941.
• C)$25,336.
• D)$22,510.

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce goods or services under a given set of conditions.

Net Loss

The amount by which total expenses exceed total revenues in a company during a specific period, indicating a financial loss.

Discontinue

To discontinue means to stop producing, selling, or providing a product or service, often permanently.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the resources they consume.