Business, 19.03.2020 08:09 sierracupcake0220

One year ago, the Jenkins Family Fun Center deposited $4,300 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,100 to this account. They plan on making a final deposit of $8,300 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent

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Answer from: haileyhale5

Amount available when ready to buy the equipment = $22,020.

Explanation:

Year 1:

Opening balance = nil

Deposit = 4,300 (A)

Interest on deposit received = $4,300×6% = $258 (B)

Closing balance at the end of year 1 (A+B) = Cash deposit + interest

Closing balance at the end of year 1 (A+B) = $4,300 + $258

Closing balance at the end of year 1 (A+B) = $4,558

*This closing balance of $4,558 will appear as opening balance at the start of year 2

Year 2:

Opening balance = $4,558

Deposit in year 2 = $6,100

Total amount = Opening balance + deposit in year 2

Total amount = $4,558 + $6,100

Total amount = $10,658

Interest on total amount= $10,658 ×6%

Interest on total amount = $640

Total closing balance = Amount + interest

Total closing balance = $10,658 + $640

Total closing balance = $11,298

*This closing balance of $11,298 will appear as opening balance at the start of year 3:

Year 3:

Opening balance = $11,298

Final deposit = $8,300

Total amount = $11,298 + $8,300

Total amount = $19,598 (A)

Interest at 6% = $19,598 × 6%

Interest at 6% = 1,176 (B)

Closing balance (A+B) = $19,598 + $1,176

Closing balance (A+B) = $20,774

*This closing balance of $20,774 will appear as opening balance at the start of year 4:

Year 4:

In year 4, there is no more deposit made, therefore, only the interest will be earned on the closing balance of the account.

Opening balance (A) = $20,774

Interest (6%) = $20,774 × 6%

Interest (6%) = $1,246 (B)

Total amount (A+B) = $20,774 + $1,246

Total amount (A+B) = $22,020

The amount of $22,020 will be available, when they will be ready to buy the new equipment at the end of four years.

Answer from: Quest

answer is a

explanation:

Answer from: Quest

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.

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