Loretta Deposits $350 Every Quarter into a Savings Account That

question 23

Multiple Choice

Loretta deposits $350 every quarter into a savings account that earns 4.5% interest compounded quarterly.What is the balance after 7 years?

• A) $10,312.63
• B) $11,344.18
• C) $11,444.27
• D) $12,477.74

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Definitions:

Operating Cycle

The average time period between purchasing inventory and receiving cash from sales of the inventory.

Inventory Period

The average time an item remains in inventory before being sold, reflecting the turnover rate of a company's stock and efficiency in managing inventory.

Accounts Payable Period

The average number of days it takes for a company to pay off its suppliers and creditors.

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.