1. Other
  2. Other
  3. kern company deposited 4900 in the bank on january 1...

Question: kern company deposited 4900 in the bank on january 1...

Question details

Kern Company deposited $4,900 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accumulated interest on January 1, 2019.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

Compute the amount of money Kern withdraws from the bank assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar.

a. Annual compounding $
b. Semiannual compounding $
c. Quarterly compounding $
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution