Suppose You Put $500 into a Bank Account Today

question 79

Multiple Choice

Suppose you put $500 into a bank account today.Interest is paid annually and the annual interest rate is 5.5 percent.The future value of the $500 is

• A)$637.50 after 5 years and $822.09 after 10 years.
• B)$637.50 after 5 years and $775.00 after 10 years.
• C)$653.48 after 5 years and $854.07 after 10 years.
• D)$688.36 after 5 years and $915.56 after 10 years.

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Definitions:

Direct Labor

Direct labor refers to the wages paid to employees who are directly involved in the production of goods or services.

Direct Materials

Raw materials that are directly consumed in the manufacturing process of a product and are easily traceable to it.

Cost of Goods Manufactured

The total expense incurred by a company to produce goods in a specific period, including labor, material, and overhead costs.

Total Manufacturing Costs

The sum of all expenses directly involved in the production of goods, including materials, labor, and overhead.