The first $4,750 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. No. of Deposit Amount Interest left in Fund Balance Fund Payments 12/31/2024 4,750

The first $4,750 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. No. of Deposit Amount Interest left in Fund Balance Fund Payments 12/31/2024 4,750

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 13P: Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a...

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Question

Wiseman Video plans to make four annual deposits of $4,750 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.

Determine how much will be accumulated in the fund on December 31, 2024, under each of the following situations.

The first $4,750 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at
the end of each year.
Deposit
Amount
No. of
Interest left in Fund Balance
Fund
Payments
12/31/2024
$
4,750

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