Explore BrainMass

Explore BrainMass

    Financial Accounting : Compounding Interest

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    BE2-19 Porter Company signed a lease for an office building for a period of 10 years. Under
    the lease agreement, a security deposit of $10,000 is made. The deposit will be returned at the
    expiration of the lease with interest compounded at 5% per year. What amount will Porter receive
    at the time the lease expires?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:05 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/financial-accounting-compounding-interest-13945

    Solution Preview

    Hi

    Assume the $10,000 is deposited at time t=0 then after one year (t=1) the deposit will have accumulated to $10,000 x 1.05 = ...

    Solution Summary

    A compounding interest problem is solved and explained.

    $2.19

    ADVERTISEMENT