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

question 256

Multiple Choice

Calculate the amount of interest that would be earned on an account of $344,000 if it earned 4.95% for 37 days.

• A) $17,028
• B) $11,124
• C) $991
• D) $1,726
• E) $2,110

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net gain or loss of the investment divided by its initial cost.

Departmental Contribution

The amount of income earned by a specific department after direct costs associated with the department have been subtracted.

Overhead

The ongoing administrative, general, and maintenance expenses incurred during the production process, not including direct labor or materials costs.

Profit Centers

Parts of an organization that are responsible for generating revenue and evaluated based on their profitability.