Financial Accounting, 10e WileyPLUS Registration Card + Loose-leaf Print Companion
10th Edition
ISBN: 9781119346661
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: Wiley (WileyPLUS Products)
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Question
Chapter G, Problem 1BE
To determine
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:
The accumulated amount withdraw by J.
Expert Solution
Answer to Problem 1BE
Step 1: Calculate the amount of simple interest.
Step 2: Calculate the accumulated amount.
Therefore, the accumulated amount withdraw by J is $9,600.
Explanation of Solution
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.
To determine
To Calculate: The future value of a single amount (if the interest compounded annually).
Expert Solution
Answer to Problem 1BE
Therefore, the future value of an amount is $10.775.16.
Explanation of Solution
J invested $6,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12th 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.
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Chapter G Solutions
Financial Accounting, 10e WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. G - Prob. 1BECh. G - Prob. 2BECh. G - Prob. 3BECh. G - Prob. 4BECh. G - Prob. 5BECh. G - Prob. 6BECh. G - Prob. 7BECh. G - Prob. 8BECh. G - Prob. 9BECh. G - Prob. 10BE
Ch. G - Prob. 11BECh. G - Prob. 12BECh. G - Prob. 13BECh. G - Prob. 14BECh. G - Prob. 15BECh. G - Prob. 16BECh. G - Prob. 17BECh. G - Prob. 18BECh. G - Prob. 19BECh. G - Prob. 20BECh. G - Prob. 21BECh. G - Prob. 22BECh. G - Prob. 23BECh. G - Prob. 24BECh. G - Prob. 25BECh. G - Prob. 26BECh. G - Prob. 27BECh. G - Prob. 28BE
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