You deposit 500 in an account on January 1, 2003. Interest is credited each year on December 31, at a rate of 4% on the first 1000 in the account on January 1 of that year and 5% of any excess over 1000. ust after interest is credited on December 31, 2032, X is in the ccount. Calculate X.

You deposit 500 in an account on January 1, 2003. Interest is credited each year on December 31, at a rate of 4% on the first 1000 in the account on January 1 of that year and 5% of any excess over 1000. ust after interest is credited on December 31, 2032, X is in the ccount. Calculate X.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 8CE

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Question

You deposit 500 in an account on January 1, 2003. Interest is credited
each year on December 31, at a rate of 4% on the first 1000 in the
account on January 1 of that year and 5% of any excess over 1000.
Just after interest is credited on December 31, 2032, X is in the
account. Calculate X.

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