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3) Megan invests $1,500 at the end of each year into an account earning 2% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year 0 1 2 3 Amount in 1st account Amount deposited into 2nd account ... 29 30

3) Megan invests $1,500 at the end of each year into an account earning 2% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year 0 1 2 3 Amount in 1st account Amount deposited into 2nd account ... 29 30

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...
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Megan invests $1, 500 at the end of each year into an account earning 2% effective annual interest.

She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years?

Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in

3) Megan invests $1,500 at the end of each year into an account earning 2% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year 0 1 2 3 Amount in 1st account Amount deposited into 2nd account ... 29 30
Transcribed Image Text:3) Megan invests $1,500 at the end of each year into an account earning 2% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year 0 1 2 3 Amount in 1st account Amount deposited into 2nd account ... 29 30
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