On January 1, 2015, Wesley Corporation completed the following transactions (assume a 7 percent annual interest rate): NOTE: EACH FUND IS INDEPENDENT TRANSACTION. ASSUME ANNUAL
On January 1, 2015, Wesley Corporation completed the following transactions (assume a 7 percent annual interest rate): NOTE: EACH FUND IS INDEPENDENT TRANSACTION.
ASSUME ANNUAL COMPOUNDING FOR THIS PROBLEM.
- Deposited $15,000 in Fund A.
- Established Fund B by agreeing to make five annual deposits of $2,000 each. Deposits are made each December 31.
- Established Fund C by depositing a single amount that will increase to $50,000 by the end year 6.
Required:
- What will be the balance of Fund A at the end of 2022?
- What will be the balance of Fund B at the end of 2019?
- What single amount must be deposited in Fund C on January 1, 2015?
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Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
19th Edition
0538869720, 978-0538869720
