Answered: In this problem: How much is the…

In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest rate is 8% compounded monthly? What is the value of n that you will use in the formula?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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500 in 8 years if the interest rate is 8% compounded monthly?
What is the value of n that you will use in the formula?

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You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
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