5.Compounded interest is

interest only paid on interest

interest paid on principal and interest

Interest collected on the principal

interest only paid on the principal

None of the other alternatives are correct

3A company is obligated to make annual payments to a pension fund at the end of the next three years. The present value of those payments is to be $100,000. Which of the following amounts is nearest the amount which must be paid annually if the fund is projected to earn interest at the rate of 8% per year?

$41,990

$38,803

$33,333

$26,461

None of the other alternatives are correct

6Which one of the following statements is true?

Interest makes a dollar today worth the same as a dollar tomorrow

Interest makes a dollar today worth less than a dollar tomorrow

Interest has no effect on the value of a dollar

None of the other alternatives are correct

Interest makes a dollar today worth more than a dollar tomorrow

5.Cell My Way Inc. previously accrued a product warranty expense of $144,000 for defective units. The balance in the Warranty Liability Account currently has a balance of $140,000. Cell My Way Inc.'s warranty covers both parts and service. Which of the following journal entry is recorded each time a unit is brought in for repair (considering parts only)?

Dr. Estimated Liability for Product Warranty. Cr. Product Warranty Expense

None of the other alternatives are correct

Dr. Estimated Liability for Product Warranty. Cr. Purchases

Dr. Estimated Liability for Product Warranty. Cr. Labour

Dr. Estimated Liability for Product Warranty. Cr. Supplies