If You Invest $2,000 Today at 9% Compounded Interest for Two

question 49

Multiple Choice

If you invest $2,000 today at 9% compounded interest for two years, the value of the investment to the nearest dollar at the end of the two years will be:

• A) $2,376
• B) $2,360
• C) $2,180.
• D) $1,640.
• E) $1,624.

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Definitions:

Accumulated Depreciation

The aggregate sum of depreciation costs accounted for a fixed asset since its inception of use.

Equipment Account

A financial account that tracks the acquisition cost and depreciation of a company's equipment.

Ordinary Repairs

Routine maintenance and repair costs that are expensed in the period incurred to keep an asset in its normal operating condition.

Physically Extracted

The process of removing materials or resources from the natural environment through manual or mechanical means.