None E9-24 (Algo) Computing Future Values: Recording Growth in a Savings Account with Equal PeriodicPayments LO 9-7At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent annual interest, which will beadded to the fund balance at year-end. The first deposit will be made at the end of Year 1.Note: Use Excel for those parts involving the time value of money.Required:1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1.2. What will be the balance in the savings account at the end of the 10th year (ie., after 10 deposits)?3. What is the interest earned on the 10 deposits?4. How much interest revenue did the fund earn in the second year? In the third year?5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years.Complete this question by entering your answers in the tabs below.Required 1Required 2and 3Required 4Required 5How much interest revenue did the fund earn in the second year? In the third year? (Do not round intermediate calculations.Round your answers to nearest whole dollar.)Interest revenueYear 2Year 3< Required 2 and 3Required 5 >

Answer:- The savings account is an account opened by the customer with the bank in which the…

Answered: At the end of each year, you plan to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
E9-24 (Algo) Computing Future Values: Recording Growth in a Savings Account with Equal Periodic Payments LO 9-7 At the end of each year, you plan to deposit $3,600 in a savings account. The account will earn 8 percent annual interest, which will be added to the fund balance at year-end. The first deposit will be made at the end of Year 1. Note: Use Excel for those parts involving the time value of money. Required: 1. Assume you follow GAAP. Prepare the required journal entry at the end of Year 1. 2. What will be the balance in the savings account at the end of the 10th year (i.e., after 10 deposits)? 3. What is the interest earned on the 10 deposits? 4. How much interest revenue did the fund earn in the second year? In the third year? 5. Assume you follow GAAP. Prepare the all required journal entries at the end of the second and third years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 and 3 Required 4 Required 5 2. What will be the balance…
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On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 2. What is the total interest for the 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 3. How much interest revenue did the fund earn in 2021 and in 2022?
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