Joe Plans to Deposite $100 at the End of Each

question 167

Multiple Choice

Joe plans to deposite $100 at the end of each month into a bank acount for a period of 2 years, after which he plans to deposite $600 at the end of each month into the same account for another 3 years. If the bank pays interest at the rate of 8%/year compounded monthly, how much will Joe have in his account by the end of 5 years? (Assume no withdrawals are made during the 5-years period.) Round your intermediate calculations to two decimal places. ​

• A) $29,243.83
• B) $29,658.46
• C) $30,558.46
• D) $26,581.10
• E) $27,615.46

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Definitions:

Disclosure

A requirement by corporations to provide shareholders and the public with accurate financial information, revealing the full financial performance and risks of the firm.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

AASB 101

An accounting standard issued by the Australian Accounting Standards Board that prescribes the basis for presentation of general purpose financial statements.

Statement of Changes

A financial statement that shows how the equity of a company has changed over a certain period due to various reasons like profits, losses, or distributions.