If the Interest Rate Is 4%,in Which of the Following

question 176

Multiple Choice

If the interest rate is 4%,in which of the following cases is the future value the largest?

• A)An initial value of $1,000 deposited for 5 years.
• B)An initial value of $950 deposited for 6 years.
• C)An initial value of $900 deposited for 7 years.
• D)An initial value of $850 deposited for 8 years.

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Definitions:

Direct Labor-Hours

A measure of the amount of time spent by workers directly involved in the manufacturing process, used in calculating labor costs and efficiency.

Journal Entry

A record in the accounts of a business, documenting a financial transaction with both debit and credit parts.

Direct Labor Costs

Expenses associated directly with the manufacturing of a product, including wages of workers actually making the product.

Indirect Labor Costs

Costs associated with employees who do not directly work on the product but are necessary for the manufacturing process.