What will be the future amount accumulated by each of the following present investments? (a) $7000...

Question

Question

business accounting

Answer 1

Answer #1

FV = PV(1 + r)^t

(a) FV = $7,000[1 + (0.07 / 2)]⁸⁽²⁾ = $12,137.90

(b) FV = $11,000[1 + (0.12 / 4)]¹¹⁽⁴⁾ = $40,385.98

(c) FV = $8,000[1 + (0.12 / 12)]⁸⁽¹²⁾ = $20,794.18

Answer 2

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