Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Chapter C, Problem 2E
1.
To determine
Compute the amount that A deposited on January 1.
2.
To determine
Compute the interest for the 4 years.
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On January 1, Alan King decided to transfer an amount from his checking account into aninvestment account that later will provide $80,000 to send his son to college (four yearsfrom now). The investment account will earn 8 percent, which will be added to the fund eachyear-end.Required (show computations and round to the nearest dollar):1. How much must Alan deposit on January 1?2. What is the interest for the four years?
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1. Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10 years. The fund earns 9% annual interest, compounded monthly, and paid at the end of the month. How much is in her account right after the last deposit? Show solution.
Chapter C Solutions
Fundamentals Of Financial Accounting
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