A man invested 100,000 every end of the year for 10 years, then waited for another 10years for his money to grow. If his investment earned 8% compounded annually, what would be the sum of his investment and earnings at the end of the 20th year.

A man invested 100,000 every end of the year for 10 years, then waited for another 10years for his money to grow. If his investment earned 8% compounded annually, what would be the sum of his investment and earnings at the end of the 20th year.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

A man invested 100,000 every end of
the year for 10 years, then waited for
another 10years for his money to grow.
If his investment earned 8%
compounded annually, what would be
the sum of his investment and earnings
at the end of the 20th year.

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