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Expert-verified Found in: Page 303 ### Intermediate Accounting (Kieso)

Book edition 16th
Author(s) Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Pages 1552 pages
ISBN 9781118743201

# Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money. Instructions (a) Compute the amount Alan would withdraw assuming the investment earns simple interest. (b) Compute the amount Alan would withdraw assuming the investment earns interest compounded annually. (c) Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually The amount at the withdrawal using simple interest will be$32,800, Compounded annually will be $37,018, and compounded semi-annually will be$37,459.

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## Step 1: Simple Interest ## Step 2: Compounded Annually ## Step 3: Compounded Semi-annually  ### Want to see more solutions like these? 