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What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 19E

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Question

What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%?

A) $16,200

B) $13,889

C) $15,000

D) $1,200

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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