2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent compounded annually. (A) How much would you have at the end of four years? (If you get this right, the next two questions are straightforward) (B) Now suppose interest was compounded monthly. How much would you have then? (C) Now suppose interest was compounded quarterly. How much would you have then?

2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent compounded annually. (A) How much would you have at the end of four years? (If you get this right, the next two questions are straightforward) (B) Now suppose interest was compounded monthly. How much would you have then? (C) Now suppose interest was compounded quarterly. How much would you have then?

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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