Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Kern Company deposited $1,000 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accumulated interest on January 1, 2019.
We need to use the following formula:
FV= PV*(1+i)^n
A) i= 0.08 n=2
FV= 1000*(1.08^2)= $1,166.4
B) i= 0.08/2= 0.04 n= 4
FV= 1,000*(1.04^4)= $1,169.86
C) i= 0.02 n= 8
FV= 1,000*(1.02^8)= $1,171.66
