The Future Value of $500 Saved for Two Years at an Interest

question 30

Multiple Choice

The future value of $500 saved for two years at an interest rate of 5% is

• A)$550.25.
• B)$550.00.
• C)$551.25.
• D)None of the above are correct.

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Definitions:

Discontinuance

This term refers to the cessation of operations or activities in a specific business segment or location.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset up to a specific point in its life.

Total Cost Concept

An approach that considers all variable and fixed costs associated with the production of goods or services.