Answer
Total withdrawn = 39,200
Work Step by Step
8% x 20,000=2,400
Simple interest of 2,400 per year X 8 …………….……….....19,200
Principal (add)……………………………………………………………. 20,000
Total withdrawn………………………………………………………… 39,200
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 6 - Accounting and the Time Value of Money - Exercises - Page 343: E6-2a
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