On the Internet You Find the Following Offers for Opening

question 100

Multiple Choice

On the Internet you find the following offers for opening an online account.Which of them is the best offer if you have $2,000 to save for two years?

• A)an interest rate of 5 percent,with the bank charging you a $15 processing fee at the time you open your account
• B)an interest rate of 3.5 percent,with the bank giving you a $35 bonus to open your account
• C)an interest rate of 4 percent,with the bank giving you a $20 bonus at the time you open your account
• D)an interest rate of 4.5 percent,with no processing fee and no bonus

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Definitions:

Variable Costs

Expenses that fluctuate in unison with the amount of production or the quantity of goods produced.

Sales Volume Variance

A measure used in variance analysis to assess the difference between the actual units sold and the budgeted sales volume, impacting revenue.

Actual Sales Volume

The real number of units sold or services provided by a business during a specific period, as opposed to forecasted or planned sales volumes.

Budgeted Contribution Margin

The anticipated difference between sales revenue and variable costs in a budget period.