Find the Accumulated Amount a If the Principal P =

question 156

Multiple Choice

Find the accumulated amount A if the principal P = $120,000 is invested at the interest rate of r = 6% per year for t = years compounded monthly. ​

• A) The accumulated amount is $169,964.44.
• B) The accumulated amount is $169,165.05.
• C) The accumulated amount is $169,293.20.
• D) The accumulated amount is $168,936.08.

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Definitions:

Variable Cost Method

A cost accounting method that only applies variable costs to inventory, excluding fixed costs from cost of goods sold calculations.

Markup

Markup refers to the difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Cost-Plus Approach

A pricing strategy where a fixed percentage or a fixed amount is added to the cost of producing a product to determine its selling price.

Markup

The amount added to the cost price of goods to cover overhead and profit.