1. What will be the balance on September 1, 2024 in a fund which is accumulated by making $20,000 annual deposits each September 1 beginning in 2017, with the last deposit being made on September 1, 2024? The fund pays interest at 8% compounded annually. (The answer is A. but how they got that?)
a. $212,733 b. $178,458
c. $151,200 d. $114,932
2. Charlie Corp. is purchasing new equipment with a cash cost of $250,000 for the assembly line. The manufacturer has offered to accept $57,400 payments at the end of each of the next six years. What is the interest rate that Charlie Corp. will be paying? (The answer is C. but how they got that?)
a. 8%. b. 9%.
c. 10%. d. 11%.