1. 1 3 6. 8 9. 10 EOY 20 21 22 23 24 25 26 28 29 30 CF $100 $100 $100 $100 $100 27

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 3
1.
1
3.
4
5
8
9.
10
EOY
20
21
22
23
24
25
26
27
28
30
CF
$100 $100
$100 $100 $100
Five deposits are made at the EOYS 2021-2025, as shown in the CF table above. If the interest rate is 6% compounded annually, what is the
amount in the account at the end of 2030?
Edit Format
Table
12pt v
Paragraph v
BIU
PrtScn
Home
DII
F2
F3
29
!!!
ilili
Transcribed Image Text:Question 3 1. 1 3. 4 5 8 9. 10 EOY 20 21 22 23 24 25 26 27 28 30 CF $100 $100 $100 $100 $100 Five deposits are made at the EOYS 2021-2025, as shown in the CF table above. If the interest rate is 6% compounded annually, what is the amount in the account at the end of 2030? Edit Format Table 12pt v Paragraph v BIU PrtScn Home DII F2 F3 29 !!! ilili
Expert Solution
Step 1

The $100 cash flows is an annuity and here we can find the present value (PV) first and then convert it into FV (future value).

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