Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money. Instructions a.    Compute the amount Alan would withdraw assuming the investment earns simple interest. b.    Compute the amount Alan would withdraw assuming the investment earns interest compounded annually. c.    Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.