Imagine That Two Years Ago You Inherited $20,000 and Put

question 185

Multiple Choice

Imagine that two years ago you inherited $20,000 and put it into an account paying a fixed 8 percent annual interest rate.How much money do you have in your account now?

• A)$22,880.00
• B)$23,200.00
• C)$23,232.00
• D)$23,328.00

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Definitions:

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.

Net Income

Total earnings of a business, arrived at by subtracting all expenses and taxes from its overall income.

Dividends

Payments made to shareholders out of a corporation's profits, reflecting the company's earnings and financial health.

Common Stock

A type of equity security that represents ownership in a company, with rights to vote and share in dividends.