How Long Will It Take for Quarterly Deposits of $425

question 83

Multiple Choice

How long will it take for quarterly deposits of $425 to accumulate to be $16440 at an interest rate of 8.48% compounded quarterly? (Final answer in years and months e.g., 7 years and 4.24 months)

• A) 7 years 1.64 months
• B) 7 years .136 months
• C) 7 years 6.14 months
• D) 28 years .55 months
• E) 28 years .64 months

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Definitions:

Corporations

Legal entities that are separate and distinct from their owners, established to conduct business, earn profit, and be endowed with legal rights.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accruals and deferrals not yet recorded through daily transactions.

Closing Entries

Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner’s equity account, Owner’s Capital.

Correcting Entries

Entries to correct errors made in recording transactions.