# Number of Cash Flows The following are two independent situations. Required: 1. Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to deposit$4,000 semiannually at the end of each 6 months. Assuming interest at 14% a year compounded semiannually, bow many deposits of $4,000 each will be required, and what is the amount of the last deposit? 2. On January 1,2019, Joan Campbell borrows$20,000 from Susan Rone and agrees to repay this amount in payments of $4,000 a year until the debt is paid in full. Payments are to be of an equal amount and are to include interest at 12% on the unpaid balance of principal at the beginning of each period. Assuming that the first payment is to be nude on January 1, 2020, determine the number of payments of$4,000 each to be nude and the amount of the final payment. Using the appropriate tablet, solve each of the preceding situations.

### Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

### Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

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