Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound interest of 6%. He intends to continue this for three years after which he will move it to JMMB’s long term fund which pays interest of 8% per annum compounded semi-annually. i. How much would he be able to transfer to JMMB after 3 years? ii. How much money will he have at the end of 8 years from today?
Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound interest of 6%. He intends to continue this for three years after which he will move it to JMMB’s long term fund which pays interest of 8% per annum compounded semi-annually. i. How much would he be able to transfer to JMMB after 3 years? ii. How much money will he have at the end of 8 years from today?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual
i. How much would he be able to transfer to JMMB after 3 years? |
|
ii. How much money will he have at the end of 8 years from today? |
|
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