Question
Assuming this is a compounding-interest annuity, I made contributions of $3000 prior to opening the account and $3,000 at the end of the 1st, 2nd
Assuming this is a compounding-interest annuity, I made contributions of $3000 prior to opening the account and $3,000 at the end of the 1st, 2nd and 3rd year. Then I made another contribution of $5,000 at the end of the 4th year.
The interest rate is 10%. What is my contribution at the end of the 1st year and 4th year?
My confusion in this question is in the 1st year. Should the interest be $300 or $600?
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Lets break down the contributions and interest earned for each year End of 1st Year Initial contribu...
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Payroll Accounting 2016
Authors: Bernard J. Bieg, Judith Toland
26th edition
978-1305665910, 1305665910, 1337072648, 978-1337072649
