Essay
Calculate answers to the following scenarios using present value tables:
a.If $100 is deposited into an account paying 8 percent simple interest,what will be the value of the account in 5 years?
b.If an accumulation of $8,000 is desired at the end of 4 years,what amount must be deposited now to accomplish that goal,assuming 12 percent interest compounded annually?
c.What is the present value of $300 received at the end of each year for 4 years,assuming 9 percent interest compounded annually?
d.What amount must be deposited at the bank today to grow to $10,000 in 5 years,assuming 14 percent interest compounded semiannually?
Correct Answer:
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a.$140 [(100 × 0.08 × 5)+ $100...View Answer
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