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Q: financial accounting ( Answered 4 out of 5 stars,   0 Comments )
Subject: financial accounting
Category: Business and Money > Accounting
Asked by: k9queen-ga
List Price: $2.00
Posted: 22 Jan 2003 11:34 PST
Expires: 21 Feb 2003 11:34 PST
Question ID: 147072
A friend plans to buy a big screen TV, and can afford to set aside
$1,320.00 toward the purchase today.  If your friend can earn 5.0%,
how much can your friend spend in 4 years on the purchase?  Round off
to the nearest dollar.

Request for Question Clarification by legolas-ga on 22 Jan 2003 11:37 PST
5% per year, compounded or simple interest?
Subject: Re: financial accounting
Answered By: legolas-ga on 22 Jan 2003 11:41 PST
Rated:4 out of 5 stars
Hi k9queen-ga,

I'll just give both:

Compounded monthly, at 5% per year, your friend will have $1611.59.

Simple interst, at 5% per year, with the 5% not being paid on the interest $1584.00


k9queen-ga rated this answer:4 out of 5 stars
Great answer! Thank you, and very fast response!

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