Determine how much will be accumulaed in the fund


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 annuity table, determine how much will be accumulated in the fund on December 31, 2012,under each of the following situations:

1. The first deposit is made on December 31, 2009, and interest is compounded annually.

2. The first deposit is made on December 31, 2008, and interest is compounded annually.

3. The first deposit is made on December 31, 2008, and interest is compounded quarterly.

4. The first deposit is made on December 31, 2008, interest is compounded annually, and interest earned is withdrawn at the end of each year.

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Accounting Basics: Determine how much will be accumulaed in the fund
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