Your Client Has Systematically Invested $1,000 at the End of Each

question 160

Short Answer

Your client has systematically invested $1,000 at the end of each half-year for the past 17 years. The invested funds have earned 6.4% compounded semi-annually. What is the value of your client's investments today? (Taken from CIFP course materials.)

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Definitions:

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet, or an entry on the right side of a double-entry bookkeeping system that represents the addition of value to an account.

Debit

An accounting entry that increases assets or expenses or decreases liabilities, equity, or revenue.

Chart Of Accounts

A systematic list of all account titles and numbers used by an organization to organize its financial transactions systematically.

Accounts Used

Refers to the specific ledgers, charts, or titles under which financial transactions are categorized and recorded in accounting.