FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A company plans to make four annual deposits of $3,750 each to a special building fund. The fund's assets will be invested in
mortgage instruments expected to pay interest at 12% on the fund's balance.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
Determine how much will be accumulated in the fund after four years under each of the following situations:
1. The $3,750 annual deposit are made at the end of each of the four years and interest is compounded annually.
2. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded annually.
3. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.
4. The $3,750 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest
earned is withdrawn at the end of each year.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3 Required 4
The $3,750 annual deposits are made at the beginning of each of the four years and interest is compounded quarterly
Note: Round your final answers to nearest whole dollar amount.
Deposit
First deposit
Second deposit
Third deposit
Fourth deposit
=
n=
$
3,750
3,750
3,750
3,750
Fund Balance
$
0
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Transcribed Image Text:A company plans to make four annual deposits of $3,750 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $3,750 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $3,750 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The $3,750 annual deposits are made at the beginning of each of the four years and interest is compounded quarterly Note: Round your final answers to nearest whole dollar amount. Deposit First deposit Second deposit Third deposit Fourth deposit = n= $ 3,750 3,750 3,750 3,750 Fund Balance $ 0
A company plans to make four annual deposits of $3,750 each to a special building fund. The fund's assets will be invested in
mortgage instruments expected to pay interest at 12% on the fund's balance.
Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Required:
Determine how much will be accumulated in the fund after four years under each of the following situations:
1. The $3,750 annual deposit are made at the end of each of the four years and interest is compounded annually.
2. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded annually.
3. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.
4. The $3,750 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest
earned is withdrawn at the end of each year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
The $3,750 annual deposits are made at the beginning of each of the four years interest is compounded annually, and interest
earned is withdrawn at the end of each year.
$
Deposit
Amount
3,750
Number of
Payments
Required 4
Interest left in
Fund
Fund Balance
expand button
Transcribed Image Text:A company plans to make four annual deposits of $3,750 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $3,750 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $3,750 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $3,750 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 The $3,750 annual deposits are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. $ Deposit Amount 3,750 Number of Payments Required 4 Interest left in Fund Fund Balance
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