Question
Wiseman Video plans to make four annual deposits of $2,250 each to a special building fund. The funds assets will be invested in mortgage instruments
Wiseman Video plans to make four annual deposits of $2,250 each to a special building fund. The funds assets will be invested in mortgage instruments expected to pay interest at 12% on the funds balance. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine how much will be accumulated in the fund on December 31, 2024, under each of the following situations.
The first $2,250 deposit is made on December 31, 2021, and interest is compounded annually.
The first $2,250 deposit is made on December 31, 2020, and interest is compounded annually.
The first $2,250 deposit is made on December 31, 2020, and interest is compounded quarterly.
The first $2,250 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year.
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