Bill deposits $100 at the end of each year for thirteen years into fund A. Seth deposits $100 at the end of each year for thirteen years into fund B. Fund A earns an annual effective rate of 15% for the first five years and an annual effective rate of 6% thereafter. Fund B earns an annual effective rate of i throughout the thirteen years. The two funds have equal accumulated values at the end of the thirteen years. Find i.

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?