If You Put $125 into an Account That Paid 3

question 196

Multiple Choice

If you put $125 into an account that paid 3.25 percent interest,then how much money would you have in the account after 20 years?

• A)$285.83
• B)$236.98
• C)$202.04
• D)$145.65

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Definitions:

Normal Balance

The side of an account (debit or credit) where increases are recorded, depending on the account type (asset, liability, equity, revenue, expense).

Temporary/Permanent

In accounting, this distinction categorizes accounts based on their persistence; temporary accounts reset each cycle, while permanent accounts carry their end balance into the next period.

Accrued Interest

Interest that has been incurred but not yet paid, often associated with bonds and loans.

Note Payable

A financial liability representing a written promissory note to pay a specific sum of money to another entity on a specific future date or on demand.