What is total amount of interest earned on the investment

Assignment Help Financial Accounting

Reference no: EM131212854

On January 1, 2013, you decided to take a trip around the world after graduation. Assume that you will graduate 3 years from January 1, 2013. Your grandmother wanted to help you save money for the trip. Being the generous and sweet lady she is, your grandmother decided to deposit $4,500 in the travel fund at the end of each of the next 3 years, starting on December 31, 2013. The savings account will earn 5 percent interest.

Required:

1. How much money will you have for the trip at the end of year 3? (Round your final answer to the nearest whole dollar amount.)

2. What is the total amount of interest earned on the investment? (Round your final answer to the nearest whole dollar amount.)

Reference no: EM131212854

Questions Cloud

Equal to the maturity value of the note : The proceeds of a discounted note receivable are sometimes less than the face value of the note. always greater than the face value of the note. always less than the face value of the note. equal to the maturity value of the note.

Annual depreciation using straight line depreciation : A second hand bulldozer acquired at the beginning of the fiscal year at a cost of $68,000 has an estimated salvage value of $9,500 and an estimated useful life of 12 years. What is the amount of annual depreciation using straight line depreciation?

Made an investment in certain equipment : Tilly's Travel Service has made an investment in certain equipment that cost the company $323,895. The equipment is expected to generate cash inflows of $55,000 each year. Use your financial calculator or excel to determine how many years the equipme..

Compensation plan where the sales force is paid salary plus : Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base. In activity-based costing, some manufacturing costs can be excluded from product costs. Direct labor-hours may be used as a measure of ac..

What is total amount of interest earned on the investment : On January 1, 2013, you decided to take a trip around the world after graduation. Assume that you will graduate 3 years from January 1, 2013. Your grandmother wanted to help you save money for the trip. How much money will you have for the trip at th..

When the book value cannot fall below the salvage value : A second hand bulldozer acquired at the beginning of the fiscal year at a cost of $68,000 has an estimated salvage value of $9,500 and an estimated useful life of 12 years. What is the amount of annual depreciation in year 11 using DDB depreciation w..

Decided to transfer an amount from his checking account : On January 1, 2014, Alan King decided to transfer an amount from his checking account into a savings account so that he will have $95,000 to send his son to college 6 years from now. The savings account will earn 8 percent interest. How much must Ala..

Provide cash-accounts receivable-inventory-accounts payable : Yolanda Hagen, a former disc golf star, operates Yolanda’s Discorama. At the beginning of the current season on April 1, the ledger of Yolanda’s Discorama showed Cash $1,900, Inventory $2,600, and Owner’s Capital $4,500. The following transactions we..

Subject to the penalty for underpayment of estimated tax : If an individual taxpayer's quarterly estimated tax payments equal or exceed 70% of the tax due for the current year, the taxpayer will not be subject to the penalty for underpayment of estimated tax. Individual quarterly estimated tax payments are f..

User Account

All Pages