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[The following information applies to the questions displayed below.] On January 1, 2014, Spearfish Company completed the following transactions (use an 8 percent annual interest
[The following information applies to the questions displayed below.] On January 1, 2014, Spearfish Company completed the following transactions (use an 8 percent annual interest rate for all transactions): (FV of $1, PV of $1, FVA of S1, and PVA of $) (Use the appropriate factors) from the tables provided.) a. Deposited $110,000 in a debt retirement fund. Interest will be computed at six-month intervals and added to the fund at those times (l.e., semiannual compounding). (Hint. Think carefully about n and 4) b. Established a pension retirement fund to be available by the end of year 6 by making six annual deposits of $160,000 at year-end, starting on December 31, 2014. Deposited $340,000 in a debt retirement fund. Interest will be computed annually and added to the fund at those tires. c. value: .50 points Required 1-a. In transaction (a), what will be the balance in the fund at the end of year 3? Balance in the fund 1-b. What is the total amount of interest revenue that will be earned? nterest eamed
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