Lisa Altidore invested $7,000 at 7% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Lisa withdrew the accumulated amount of money. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What amount did Lisa withdraw, assuming the investment earns simple interest? The amount Lisa withdrew $ (b) What amount did Lisa withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Lisa withdrew +A $
Lisa Altidore invested $7,000 at 7% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Lisa withdrew the accumulated amount of money. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What amount did Lisa withdraw, assuming the investment earns simple interest? The amount Lisa withdrew $ (b) What amount did Lisa withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Lisa withdrew +A $
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 71IIP
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Transcribed Image Text:Lisa Altidore invested $7,000 at 7% annual interest, and left the money invested without withdrawing any of the interest for 12 years.
At the end of the 12 years, Lisa withdrew the accumulated amount of money.
Click here to view the factor table.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
(a) What amount did Lisa withdraw, assuming the investment earns simple interest?
The amount Lisa withdrew
$
(b) What amount did Lisa withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places,
e.g. 25.25.)
The amount Lisa withdrew
+A
$
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