At the End of Each Quarter, Patti Deposits $500 into an Account

question 111

Multiple Choice

At the end of each quarter, Patti deposits $500 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in three years?

• A)$7,096.
• B)$7,013.
• C)$7,129.
• D)$8,880.FVA = $500 x 14.1920* = $7,096 *FVA of $1: n=12; i=3%

Understand the importance and roles of internal controls in a company's financial practices.

Recognize the importance of segregation of duties and its impact on preventing fraud and errors in financial statements.

Identify the role and importance of external and internal audits in maintaining financial integrity.

Comprehend the procedures and benefits of using electronic funds transfers for improved cash management.

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good or service.

Marginal Cost

The hike in overall costs when one extra unit of a product or service is produced.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus remaining after all costs have been paid.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.