The following situations involve time value of money calculations: 1. A deposit of $7,000 is made on
Question:
1. A deposit of $7,000 is made on January 1, 2012. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2017, assuming that interest is compounded
a. Annually,
b. Semiannually, and
c. Quarterly?
2. A deposit is made on January 1, 2012, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2017. How much money was originally deposited assuming that interest is compounded
a. Annually,
b. Semiannually, and
c. Quarterly?
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1 a 7000 146933 10285 n 5 i 8 b 7000 14802...View the full answer
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
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The time value of money (TVM) is the concept that the money you have in your pocket today is worth more than the same amount would be if you received it in the future because of the profit it can earn during the interim.
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