Leon Ang invests HK$36,600 at 6% annual interest, leaving the money investedwithout withdrawing any of the interest for 6 years. At the end of the 6 years, Leonwithdraws the accumulated amount of money.a. Compute the amount Sue would withdraw assuming the investment earnssimple interest.b. Compute the amount Sue would withdraw assuming the investment earnsinterest compounded annually.c. Compute the amount Sue would withdraw assuming the investment earnsinterest compounded semiannually.

The objective of the question is to calculate the amount Leon would withdraw after 6 years under…

Answered: Leon Ang invests HK$36,600 at 6% annual…

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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Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott deposits $80,000 into an account and also pays 6% per year, but it is simple interest. find the interest Lisa and Scott earn during each of the first three years. Then decide who earns more interest each year. Assume there are no withdrawals and no additional deposits.
Jozy Altidore invested $6,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 12 years At the end of the 12 years, Jozy withdrew the accumulated amount of money. Click here to view the factor table 1. Table 2 Table 3 Table 4 (a) What amount did Jozy withdraw, assuming the investment earns simple interest? The amount Jozy withdrew (b) What amount did Jozy withdraw, assuming the investment earns interest compounded annually? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 5.25471. Round answer to 2 decimal places, e.g. 25.25.) The amount Jozy withdrew $
David Jackson invests $40,200 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, David withdraws the accumulated amount of money. Compute the amount David would withdraw assuming the investment earns simple interest.
Kia deposited $1,100, at the BEGINNING of each year for 25 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. A. $73,441.24 B. $80,416.53 C. $86,849.86 D. $87,949.86
Miguel invested $1,900 at the beginning of every 6 months in an RRSP for 11 years. For the first 4 years it earned interest at a rate of 4.60% compounded semi-annually and for the next 7 years it earned interest at a rate of 5.10% compounded semi-annually.a. Calculate the accumulated value of her investment at the end of the first 4 years.A. $55,478.69B. $56,281.73C. $16,481.53D. $16,860.61b. Calculate the accumulated value of her investment at the end of 11 years.A. $55,478.69B. $56,281.73C. $49,155.52D. $16,860.61c. Calculate the amount of interest earned from the investment.A. $14,481.73B. $13,678.69C. $8,786.82D. $5,694.91
Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.
Jane invests $700 at the end of each year for 5 years. If interest is paid at 7%/a compounded semiannually, how much will the investment be worth immediately after the last deposit is made? $28,183 $3.753 $8,211 $9,671

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