Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I am looking for the correct answer to this general accounting problem using valid accounting standards.

Can you solve this general accounting question with the appropriate accounting analysis techniques?

Laxmi Ltd. Estimates that its employees will utilize 225,000 machine hours during the coming year.

Answer 2

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Answer 6

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.

Answer 7

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Answer 8

Expert Solution & Answer

Explanation of Solution

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

Therefore, the accumulated amount withdraw by J is $9,600.

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $10.775.16. Therefore, the future value of an amount is $10.775.16.