Assume Sheffield Corp. deposits $81000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Sheffield have in the account after 4 years if interest is reinvested? O $94904. O $81000. O $93960. O $94760.

Assume Sheffield Corp. deposits $81000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Sheffield have in the account after 4 years if interest is reinvested? O $94904. O $81000. O $93960. O $94760.

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

**Scenario:**

Assume Sheffield Corp. deposits $81,000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Sheffield have in the account after 4 years if interest is reinvested?

**Options:**

- $94,904
- $81,000
- $93,960
- $94,760

This question involves understanding compound interest and calculating the future value of an initial investment under these conditions.

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