ACCT$3311\mathrm{.}010$NL INTERMEDIATE ACCOUNTING I

WEEK $6$ HOMEWORK ASSIGNMENT

Homework Assignment due Monday, February $26,2024$

E$6\mathrm{.}2($LO $1,2)($Simple and Compound Interest Computations$)$ Alan Jackson invests $$20,000$ at $8\%$ annual interest, leaving the money invested without withdrawing any of the interest for $8$ years. At the end of the $8$ years, Alan withdraws the accumulated amount of money.

Instructions:

$($a$)$ Compute the amount Alan would withdraw assuming the investment earns simple interest.

$\backslash$table$[[$Annual interest,$$,-],[$Number of years,$-,],[$Simple interest,$-,],[$Principal$,-,],[$Total withdrawn,$$,-]]$

$($b$)$ Compute the amount Alan would withdraw assuming the investment earns interest compounded annually.

$\backslash$table$[[$Future value of $1$ @ $8\%$ for $8$ periods,,$-],[$Principal$,$$$,-],[$Total withdrawn,$$,-]]$

$($use Table $6\mathrm{.}1pg\mathrm{.}6-47)$

$($c$)$ Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually.

$\backslash$table$[[$Future value of $1$@$4\%$ for $16$ periods,,$-],[$Principal$,$$$,-],[$Total withdrawn,$$,-]]$

$($use Table $6\mathrm{.}1$ pg$\mathrm{.}6-46)$