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Future Value with annual, semi annual, quartrly compounding

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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 (c) quarterly?

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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 (c) quarterly?

Note: the abbreviations have the following meanings

FVIF= Future Value Interest Factor
It can be read from tables or calculated using the following equations
FVIF( n, ...

Solution Summary

The expert calculates the future value with annual, semi annual, quartrly compounding.

$2.19