Question: You hold $2,000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of those dollars.

You hold $2,000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of those dollars. You agree to pay the customer 10% interest during the holding period. At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the customer in 3 years?

Step by Step Solution

3.47 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Computation of the future value Compound Interes... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1365-B-C-A-A-R(724).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!