An undergraduate student decides to make $ 5,000 deposits in a fund each year over the next

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An undergraduate student decides to make $ 5,000 deposits in a fund each year over the next four years to accumulate enough money to pay for a master’s program. The fund will earn 10% annual interest, compounded annually. If the first payment occurs at year- end, what amount will be in the fund after four years? Draw a timeline to illustrate the problem.
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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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