Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. Using the appropriate time-value of money table, determine how much will be accumulated in the fund on December 31, 2024, under each of the following situations:
1. The first $2,000 deposit is made on December 31, 2021, and interest is compounded annually.
2. The first $2,000 deposit is made on December 31, 2020, and interest is compounded annually.
3. The first $2,000 deposit is made on December 31, 2020, and interest is compounded quarterly.
4. The first $2,000 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year.