On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual compound interest, which will be added to the fund balance at the end of each year.Required (round to the nearest dollar):1. What will be the balance in the account at the end of 10 years?2. What is the interest for the 10 years?3. How much interest revenue did the fund earn in the first year? the second year?
On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual compound interest, which will be added to the fund balance at the end of each year.Required (round to the nearest dollar):1. What will be the balance in the account at the end of 10 years?2. What is the interest for the 10 years?3. How much interest revenue did the fund earn in the first year? the second year?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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On January 1, you deposited $6,000 in an investment account. The account will earn 10 percent
annual compound interest, which will be added to the fund balance at the end of each year.
Required (round to the nearest dollar):
1. What will be the balance in the account at the end of 10 years?
2. What is the interest for the 10 years?
3. How much interest revenue did the fund earn in the first year? the second year?
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