Calculate the Maturity Value of a Two-Year, $20,000 Guaranteed Investment

question 249

Multiple Choice

Calculate the maturity value of a two-year, $20,000 Guaranteed Investment Certificate accumulating at 5% compounded semi-annually.

• A) $18,119
• B) $20,000
• C) $22,076
• D) $23,612
• E) $24,310

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Definitions:

Operating Activities

Business functions directly related to providing goods or services, such as sales, production, and day-to-day administration.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset’s consumption or wear and tear.

Accounts Receivable

Accounts receivable is a balance sheet item representing money owed to a business for goods or services delivered but not yet paid for by customers.

Indirect Statement

A financial statement method typically used in cash flow statements to adjust net income for changes in non-cash accounts.