Present Value and Future Value The following situations involve time value of money calculations: 1. A deposit of $7,000 is made on January 1, 2010.
1. A deposit of $7,000 is made on January 1, 2010. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2015, assuming that interest is compounded
(a) Annually,
(b) Semiannually, and
(c) Quarterly?
2. A deposit is made on January 1, 2010, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2015. How much money was originally deposited assuming that interest is compounded
(a) Annually,
(b) Semiannually, and
(c) Quarterly?
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Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
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