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On January 1 , the Wiek Company contracted with its president, T . Mae, to make a single deposit immediately to establish a fund with
On January the Wiek Company contracted with its president, T Mae, to make a single deposit immediately to establish a fund with a trustee that pays Mae $ per year for each of the three years following retirement. Mae will retire after years on December and the three equal annual payments are to be made by the trustee each December starting at the end of the th year. The trustee will add to the fund annual compound interest each yearend. The fund is to have a zero balance on December immediately after the last payment to the president.
How much of the total amount paid to the president during the payout period is provided by interest earned during the threeyear payout period?
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