Suppose you deposit $5,000 into an account at the end of 2021, $4,500 at the end of 2022, $4000 at the end of 2023, and $3500 at the end of 2024. if the account earns 6% interest annually, how much have you accumulated immediately after the last payment? A $19,750 $16,742 $18,748 $17,746

Suppose you deposit $5,000 into an account at the end of 2021, $4,500 at the end of 2022, $4000 at the end of 2023, and $3500 at the end of 2024. if the account earns 6% interest annually, how much have you accumulated immediately after the last payment? A $19,750 $16,742 $18,748 $17,746

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

Suppose you deposit $5,000 into an account at the end of 2021, $4,500 at the end of 2022, $4000 at
the end of 2023, and $3500 at the end of 2024. if the account earns 6% interest annually, how much
have yoù accumulated immediately after the last payment?
A $19,750
B $16,742
$18,748
$17,746

Expert Solution

Step 1

Here in this question, we are required to calculate how much amount will be accumulated after last payment.

For calculating that, we need to prepare schedule which contains the column opening balance, amount deposited, interest income amount and closing balance.

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