Question
Edward Lewis will deposit $25100 into an account today that earns 12% per year compounded annually. Using the following factors, what is the amount that
Edward Lewis will deposit $25100 into an account today that earns 12% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 4 years?
| Type of Cash Flow | Periods | Interest Rate | Factor |
|---|---|---|---|
| PV of $1 | 4 | 12% | 0.6355 |
| FV of $1 | 4 | 12% | 1.5735 |
| PV ordinary annuity | 4 | 12% | 3.0373 |
| FV ordinary annuity | 4 | 12% | 4.7793 |
| PV annuity due | 4 | 12% | 3.4018 |
$31902
$15951
$19747
$39495
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Information Systems
Authors: Vernon Richardson, Chengyee Chang, Rod Smith
2nd edition
978-1260153156
