You Deposit X Dollars into a 3-Year Certificate of Deposit

question 98

Multiple Choice

You deposit X dollars into a 3-year certificate of deposit that pays 4.75 percent annual interest.At the end of the 3 years you have $4,229.70.What number of dollars,X,did you deposit?

• A)$3,680.00
• B)$3,712.77
• C)$3,750.00
• D)$3,772.57

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Definitions:

Budgeting Benefits

The advantages of budgeting, including improved financial management, planning, and control, as well as enhanced decision-making.

Operating Budgets

Financial plans that outline the projected revenue and expenses for the day-to-day operations of an organization.

Budgeted Income Statement

A financial statement that shows projected revenues, costs, expenses, and net income for a specific period of time.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period of time, often used to assess liquidity.