Retained earnings vs. prior year retained earnings

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Reference no: EM131831177

1. On the day Harry was born, his parents put $1200 into an investment account that promises to pay a fixed interest rate of 6 percent per year. How much money will Harry have in this account when he turns 21 (round to nearest $1)? If you could identify the TVM variable you're calculating, along with showing me how to calculate this step by step using excel it would be extremely helpful

2. During 2014, BBB paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings vs. the prior year’s retained earnings of $159,600. How much net income did the firm earn during the year?

A. $71,425

B. $74,996

C. $78,746

D. $82,683

E. $86,818

Reference no: EM131831177

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