On each December 31, you plan to transfer $2,000 from your checking account into an investmentaccount. The investment account will earn 4 percent annual interest, which will be added to theaccount balance at each year-end. The first deposit will be made December 31, 2015 (at the end ofthe period).Required (show computations and round to the nearest dollar):1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)?2. What is the total amount of interest earned on the 10 deposits?3. How much interest revenue did the fund earn in 2016? 2017?
On each December 31, you plan to transfer $2,000 from your checking account into an investmentaccount. The investment account will earn 4 percent annual interest, which will be added to theaccount balance at each year-end. The first deposit will be made December 31, 2015 (at the end ofthe period).Required (show computations and round to the nearest dollar):1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)?2. What is the total amount of interest earned on the 10 deposits?3. How much interest revenue did the fund earn in 2016? 2017?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On each December 31, you plan to transfer $2,000 from your checking account into an investment
account. The investment account will earn 4 percent annual interest, which will be added to the
account balance at each year-end. The first deposit will be made December 31, 2015 (at the end of
the period).
Required (show computations and round to the nearest dollar):
1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)?
2. What is the total amount of interest earned on the 10 deposits?
3. How much interest revenue did the fund earn in 2016? 2017?
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