An amount of money was invested in an account that earns interest compounded semiannually. From...
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Accounting
An amount of money was invested in an account that earns interest compounded semiannually. From this investment, the investor could withdraw $2,000 at the start of the first 6-month period and at the start of each of the next nine, 6-month periods (a total of ten, 6-month periods), after which time, the account balance is zero.
Interest revenue generated from this arrangement equals:
A. The future value of the annuity due
B. The future value of the annuity due minus $20,000
C. $20,000 minus the present value of the annuity due
D. The present value of the annuity due minus $20,000
E. The present value of the annuity due
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