Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years?Type of Cash FlowPeriodsInterest RateFactorPV of $1513%0.5428FV of $1513%1.8424PV ordinary annuity513%3.5172FV ordinary annuity513%6.4803PV annuity due513%3.9744 $25333$50666$14927$29854

Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years

Answered: Gary King will deposit $27500 into an…

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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Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years?

Type of Cash Flow	Periods	Interest Rate	Factor
PV of $1	5	13%	0.5428
FV of $1	5	13%	1.8424
PV ordinary annuity	5	13%	3.5172
FV ordinary annuity	5	13%	6.4803
PV annuity due	5	13%	3.9744

$25333

$50666

$14927

$29854

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