Reference no: EM132479891

Question 1 - Starting 1/1/14 and continuing each January 1 for four additional years, Case Corporation will deposit $10,000 in an account that will initially earn interest at a rate of 5%, credited each year on December 31. After the last deposit is made on 1/1/18, the account will earn 10% interest. What will be the approximate amount of the investment fund on December 31, 2020?

a. $ 66,860

b. $60,782

c. $67,012

d. $70,363

e. $73,546

Question 2 - Bill Gates plans to deposit into the bank a single amount on 9/1/15; he desires to withdraw $10,000 on 9/1/22 and $10,000 on 9/1/23. The Interest Rate is 8%. What single amount must be deposited on 9/1/15 to provide for the withdrawals?

a. $10,805

b. $11,670

c. $17,833

d. $11,238

e. $13,108

Question 3 - On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000 and a due date of December 31, 2017. The stated rate of interest is 6% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 8% is implicit in the agreed-upon price. The effective amortization method is used.

Oxford's journal entry on 1/1/15 will record approximately what amount of service revenue?

a. $569,074

b. $632,076

c. $600,000

d. $588,889

e. $611,320