Question

Coronado Altidore invested $9,500 at 6% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Coronado withdrew the accumulated amount of money.

Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(a) What amount did Coronado withdraw, assuming the investment earns simple interest?

Accumulated amount

$

(b) What amount did Coronado withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, e.g. 25.25.)

Accumulated amount

$

Answer 1

The answer has been presenetd in the supporting sheet. For detailed answer refer to the supporting sheet.