Q 6.22: You have invested $50,000 to earn 8% interest. The compounding approach that will earn...

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Q 6.22: You have invested $50,000 to earn 8% interest. The compounding approach that will earn...

Q 6.22:

You have invested $50,000 to earn 8% interest. The compounding approach that will earn the lowest amount after one year, results in a total yearend balance of

A :

$54,122.
B :

$54,000.
C :

$46,000.
D :

$50,000.

business accounting

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Answer 1

Answer #1

Correct answer---- (b) $ 54000.

Beginning balance plus interest earned= ending balance of deposit

$50000+ (50000 x 8%)= $ 54,000

Ending balance of the year will be equal to $54000 with yearly compounding.

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Answer 2

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