Each Year for the Next 10 Years,Carmen Lector Will Deposit

question 38

Essay

Each year for the next 10 years,Carmen Lector will deposit $4,000 into an investment fund that pays 8% compounded annually.
a.What is the present value of those investment payments if the first of 40 deposits are made at the end of each year?
b.What is the present value of those investment payments if the first of 40 deposits are made at the beginning of each year?

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Definitions:

Sales Journal

A specialized accounting ledger that records all sales transactions of a business, typically for goods or services on credit.

Cash Receipts Journal

A specialized accounting journal used to keep track of all cash inflows or receipts of a business.

General Journal

A comprehensive accounting ledger that records all types of financial transactions, before posting to specific accounts in the general ledger.

Expanded Purchases Journal

A detailed record used in accounting to track all purchase transactions, including more comprehensive data than a standard journal.