Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wiseman Video plans to make four annual deposits of $2,750 each to a special building fund. The fund's assets will be invested in mortgage instruments

image text in transcribedimage text in transcribedimage text in transcribed Wiseman Video plans to make four annual deposits of $2,750 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. (FV of $1, PV of $1. EVA of $1, PVA of $1. EVAD 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 after four years, under each of the following situations. 1. The first $2,750 annual deposit is made at the end of each of the four years on December 31, 2021, and interest is compounded annually, 2. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, and interest is compounded annually. 3. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, and interest is compounded quarterly. 4. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The first $2,750 deposit is made on December 31, 2020, and interest is compounded quarterly. (Round your final answers to nearest whole dollar amount.) Deposit Date n= Deposit Fund Balance 12/31/2024 12/31/2020 3% $ 2,750 $ 2,750 12/31/2021 3% 40 2,750 6,190 3. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, and interest is compounded quarterly. 4. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, Interest is compo annually, and interest earned is withdrawn at the end of each year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The first $2,750 deposit is made on December 31, 2020, and interest is compounded quarterly. (Round your final answers to nearest whole dollar amount.) Fund Balance Deposit Date 1 Deposit 12/31/2024 12/31/2020 3% - $ 2,750 $ 2,750 12/31/2021 3% 4 2,750 6,190 12/31/2022 3%- 4 2,750 10,062 12/31/2023 3% 4 2,750 14,420 33,422 Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not annually. 2. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, and interest is compounded annually. 3. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, and interest is compounded quarterly. 4. The first $2,750 annual deposit is made at the beginning of each of the four years on December 31, 2020, interest is com annually, and interest earned is withdrawn at the end of each year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The first $2,750 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. Deposit Amount 2,750 No. of Payments Interest left In Fund Fund Balance 12/31/2024

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper

2nd canadian edition

133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071

More Books

Students also viewed these Accounting questions