Find the future value of an ordinary annuity it payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=14,000; 4.6% interest compounded quarterly for 10 years.

Find the future value of an ordinary annuity it payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. R=14,000; 4.6% interest compounded quarterly for 10 years.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as
given. Then determine how much of this value is from contributions and how much is from interest.
R=14,000; 4.6% interest compounded quarterly for 10 years.
The future value of the ordinary annuity is $
(Round to the nearest cent as needed.)
The amount from contributions is $and the amount from interest is
$(Round to the nearest cent as needed.)

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