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Patricia Altidore invested $6,100 at 12% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Patricia 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 Patricia withdraw, assuming the investment earns simple interest? The amount Patricia withdrew $ (b) What amount did Patricia withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Patricia withdrew 1

Patricia Altidore invested $6,100 at 12% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Patricia 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 Patricia withdraw, assuming the investment earns simple interest? The amount Patricia withdrew $ (b) What amount did Patricia withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Patricia withdrew 1

FINANCIAL ACCOUNTING
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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Patricia Altidore invested $6,100 at 12% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Patricia 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 Patricia withdraw, assuming the investment earns simple interest? The amount Patricia withdrew $ (b) What amount did Patricia withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Patricia withdrew 1
Transcribed Image Text:Patricia Altidore invested $6,100 at 12% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Patricia 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 Patricia withdraw, assuming the investment earns simple interest? The amount Patricia withdrew $ (b) What amount did Patricia withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.) The amount Patricia withdrew 1
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