Calculate the Amount of Interest That Would Be Earned on an Account

question 265

Multiple Choice

Calculate the amount of interest that would be earned on an account of $216,000 if it earned 5.15% for 27 days.

• A) $11,298
• B) $11,124
• C) $823
• D) $1,744
• E) $2,110

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Definitions:

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, used in calculating depreciation expenses.

Maintenance Costs

Expenses incurred to keep property, equipment, or software operational and in good working condition.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Sum-Of-The-Years'-Digits Method

A depreciation method that accelerates the expense recognition, basing the depreciation for each year on a decreasing fraction of the depreciable amount.