Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually.

Fantastic news! We've Found the answer you've been seeking!

Question:

Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually. How much interest income will Justin earn on this investment?
A) $80.00
B) $81.60
C) $160.00
D) $161.60

Related Book For answer-question

Fundamentals of Financial Accounting

ISBN: 978-0078025372

4th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

See More Books

Posted Date: Jul 16, 2022 05:34 AM

See More Questions

On January 1, 2013, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in a savings account for you. On the...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
The following cases are each independent of the others. Required: 1. Sam Lilliam places $5,000 in a savings account that pays 3 percent. Suppose Sam leaves the original deposit plus any interest in...
In Problems 1158, perform the indicated operation, and write each expression in the standard form a + bi. 3i(-3 + 4i)
Identify a real-life outsourcing decision that has been made. Identify the specific reasons for the outsourcing. If information is available, discuss the results of the outsourcing decision (jobs...
Tiffany's Card and Novelty Shop is a retail card, novelty, and business supply store. Tiffany's Card and Novelty Shop commenced business on April 1,2013. The firm purchases merchandise on open...
Robert Ryan practiced accounting with a partnership for five years. Recently he opened his own accounting firm, which he operates as a professional corporation. The name of the new entity is Robert...
In our discussion of labor market pooling, we stressed the advantages of having two firms in the same location: If one firm is expanding while the other is contracting, its to the advantage of both...
At the end of this month, Leslie will start saving $200 a month for retirement through his company's superannuation plan. His employer will contribute an additional $0.50 for every $1.00 that he...
Mr. M has been employed as an engineer by A Ltd., a company incorporated in Hong Kong. During the year ended 31 March 2019, Mr. M had the following income and expenditure. A monthly salary of...
How do genomic variations, including single nucleotide polymorphisms (SNPs), insertions, deletions, and structural rearrangements, collectively contribute to an individual's genotype, and what are...
Dashing Diva has the following costs for April. Direct labor Direct materials Factory utilities Accounting services Direct marketing $ 20,000.00 $ 15,000.00 $ 8,000.00 $ 12,000.00 $ 17,000.00...
Typo: x(0) = (0,-1,1)^t Using Semi-simple and Nilpotent method A= S+N -2 0 0 1 -2 0 0 1 -2 (9) Solve = Ar, x(0) = (0,-1,1, -1)' where A = You should follow the method covered in class but may use...
Can you set up a trading strategy using long and short positions of the default-free floating rate bond and the defaultable floating rate bond that replicates the cash flow pattern of the CDS?
After failing to complete a merger in the three prior attempts noted in the case, why should the proposed transaction be successful this time? What is different? Is this a good or a bad thing?
What condition would cause capital structure management to be meaningless activity? Why should the financial manager be familiar with the business cycle?
Refer to Figure 7.5. For a gross weight of 10,000 lb. on a standard day with a clean configuration, what is the specific range for the airplane depicted in Figure 7.5 at a true airspeed of 500 knots...
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
The following items relate to business transactions involving KSwiss Inc. a. Coins and currency b. Amounts KSwiss owes to suppliers of watches c. Amounts KSwiss can collect from customers d. Amounts...
Complete the requirements of CP10-6, assuming Southwest Corporation uses simplified effective interest amortization shown in Chapter Supplement 10C. CP10-6 Required: 1. Compute the issue price of the...
During 2013, Princeton Company acquired some of the 50,000 outstanding shares of the common stock of Cox Corporation as trading securities. The accounting period for both companies ends December 31....
The following data come from the inventory records of (. Dodge Company: Based on these facts, the gross profit for Dodge Company is a. $\$ 150,000$. b. $\$ 220,000$ c. $\$ 190,000$. d. some...
A sample of students is enrolled in a speed-reading class. Each takes a reading test before and again after the class. The two samples of scores are compared to determine how large an improvement in...
A sample of students is enrolled in an online statistics class, and another sample is enrolled in a traditional statistics class. At the end of the semester, the students are given a test. The scores...

Justin invests $4,000 in a savings account for two years. The account pays 2% interest compounded annually.

Question:

Expert Answer:

The formula used to calculate compound inter... View the full answer

Fundamentals of Financial Accounting

Students also viewed these economics questions