On each December 31, you plan to transfer $2,000 from your checking account into an investment account.

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On each December 31, you plan to transfer $2,000 from your checking account into an investment account. The investment account will earn 4 percent annual interest, which will be added to the account balance at each year-end. The first deposit will be made December 31, 2018 (at the end of the period).


Required 

1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)?

2. What is the total amount of interest earned on the 10 deposits?

3. How much interest revenue did the fund earn in 2019? 2020?

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Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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