Note to the Instructor: Present and Future Value Tables Could

Essay

Note to the instructor: Present and future value tables could be used for this question, but they are not required for its solution. Meade Company has accumulated cash in a fund to use for future expansion. The following accumulation schedule for the fund was prepared: $$\begin{array} { | l | r | r | r | } \hline \text { Date } & ? &? & ? \\\hline 12 / 31 / 20X 1 & \$ 4,811 & \$ - 0 & \$ 4,811 \\\hline 12 / 31 / 20X 2 & 4,811 & 433 & 10,055 \\\hline 12 / 31 / 20X 3 & 4,811 & 905 & 15,771 \\\hline 12 / 31 / 20X 4 & 4,811 & 1,419 & 22,001 \\\hline\end{array}$$ Required: Refer to the schedule above and respond to the following questions by entering the answers in the blanks to right.
$$\begin{array} { | l | l | } \hline \text { A. What was the fund's goal in dollars? } & \\\hline \text { B. What was the annual contribution to the fund? } & \\\hline \text { C. What interest rate was earned? } & \\\hline \text { D. What amount interest was earned in } & \\\text { 20X1: } & \\ 20X 3 : & \\\hline \text { E. Give the entry on } 12 / 31 / 20 \times 2 \text { : } & \\\hline\end{array}$$