QQuestionAccounting
QuestionAccounting
Amaki's company Itd. received a $200 bill for copying services dated April 27. The terms on the invoice were 3 / 10 EOM. The firm paid the bill on June 2. How much did it pay?
QUESTION 3
Abena receives $5,000 semi annually from his grandmother's estate. He invests the money at 3.8% compounded semiannually. How much will he have after two years investing as an annuity due?
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Answer
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Step 1: First, we need to determine the total number of compounding periods.
Since Abena receives money semi-annually and the interest is compounded semi-annually, the number of compounding periods is equal to the number of payments. Number of compounding periods = Number of payments
Step 2: Calculate the number of payments.
Abena receives $5,000 every six months, and there are two six-month periods in a year. So, over two years, there will be: Number of payments = 2 years * (2 six-month periods / year) = 4 six-month periods
Final Answer
After two years, Abena will have approximately $5,197.41 in his account.
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