a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 isivested into the same account. The account is expected to return 9% interest (compoundedannually).a) What is the value in the account at the end of 10 years?b) If the same two $15,000 deposits are made (at time 0 and end of year 4) into a differentaccount that earns a nominal annual interest rate of 8.4% compounded quarterly, in whichaccount should the money be deposited in order to earn more interest?

Investment at time 0 15000 investment at the end of 4 years 15000 Rate of Interest for 10 years…

a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is ivested into the same account. The account is expected to return 9% interest (compounded annually). a) What is the value in the account at the end of 10 years? 2$

a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is ivested into the same account. The account is expected to return 9% interest (compounded annually). a) What is the value in the account at the end of 10 years? 2$

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Question

a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is
ivested into the same account. The account is expected to return 9% interest (compounded
annually).
a) What is the value in the account at the end of 10 years?
b) If the same two $15,000 deposits are made (at time 0 and end of year 4) into a different
account that earns a nominal annual interest rate of 8.4% compounded quarterly, in which
account should the money be deposited in order to earn more interest?

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