One year ago, the jenkins family fun center deposited $3,700 in an investment account for the purpose of buying new equipment four years from today. today, they are adding another $5,500 to this account. they plan on making a final deposit of $7,700 to the account next year. how much will be available when they are ready to buy the equipment, assuming they earn a 9 percent rate of return?

If the interest rate is x% on the capital C, to calculate the total money after 1 year we have that we gain C*x and we need to add C. Hence, Money after 1 year= (1+x/100)*C
We have that today, the money in the account is 3700*(1.09)= 4033$. We then add 5500, hence we have that in total we have 4033+5500=9533$. After 1 year, the whole sum is getting multiplied by 1.09, hence we have that 1 year after today the total money is: 9533*1.09=10390.97$. We add a further 7700$ to this account, so at the start of the second year, the total sum will be 18090.97$. Then, we will wait for 3 years to get the money on this account. Hence, we have that since every year we need to multiply the sum by 1.09, after 3 years we need to multiply by . So, the total sum available after with this plan is: 18090.97*(1.09)^3=23428.33$.

This is much more that the sum of the payments that is 16.900$ and it shows how important investing and banking your money is.

Ithink it should be increased.

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."