Time value of money calculations

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Reference no: EM13953140

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, 2014. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2019, assuming that interest is com- pounded (a) annually, (b) semiannually, and (c) quarterly?

2. A deposit is made on January 1, 2014, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2019. How much money was originally deposited assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly?

Reference no: EM13953140

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