Asked by Austin isaacs on Apr 26, 2024
Verified
Wingate Company borrowed $90000 on January 2 2017. This amount plus accrued interest of 6% compounded annually will be repaid at the end of 3 years. What amount will Wingate repay at the end of the third year?
Accrued Interest
The interest that has accumulated on a bond, loan, or other financial instrument since the last interest payment was made.
Compounded Annually
Interest on an investment or loan calculated once a year, where each year's interest is added to the principal.
- Obtain knowledge for calculating the anticipated future value of investments.
Verified Answer
SG
sophiya gurungApr 29, 2024
Final Answer :
Use Table 1.
$90000 × 1.19102 (3 periods and 6%) = $107191.80
$90000 × 1.19102 (3 periods and 6%) = $107191.80
Learning Objectives
- Obtain knowledge for calculating the anticipated future value of investments.