Problem 1 A P 6, 000.00 was lent at 6% simple interest for 4 years. At the end of 4th year, the entire money (including the interest) was invested at 5% compounded annually for 12 years. What is the future worth of the investment at the end of the 16th year? Given: Required: Solution:

Problem 1 A P 6, 000.00 was lent at 6% simple interest for 4 years. At the end of 4th year, the entire money (including the interest) was invested at 5% compounded annually for 12 years. What is the future worth of the investment at the end of the 16th year? Given: Required: Solution:

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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Question

Problem 1
A P 6, 000.00 was lent at 6% simple interest for 4 years. At the end of 4th year, the entire money
(including the interest) was invested at 5% compounded annually for 12 years. What is the future worth
of the investment at the end of the 16th year?

Given:

Required:

Solution:

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