Present Value, Future Value The following situations involve time value of money calculations.

1. A deposit of $7,000 is made on January 1, 2008. The deposit will earn interest at a rate of 8%.

How much will be accumulated on January 1, 2013, assuming that interest is compounded

(a) annually,

(b) semiannually, and

(c) quarterly?

2. Adeposit is made on January 1, 2008, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2013. How much money was originally deposited assuming that interest is compounded

(a) annually,

(b) semiannually, and

(c) quarterly?