Future Values On January 1, Beth Woods made a single deposit of $8,000 in an investment account that earns 8% interest. Required: Note: Round answers to two decimal places. 1. Calculate the balance in the account in 5 years assuming the interest is compounded annually. 2. Determine how much interest will be earned on the account in 7 years if interest is compounded annually. 3. Calculate the balance in the account in 5 years assuming the 8% interest is compounded quarterly.
Cornerstones of Financial Accounti...
Cornerstones of Financial Accounti...
Solutions
Future Values
On January 1, Beth Woods made a single deposit of $8,000 in an investment account that earns 8% interest.
Required:
Note: Round answers to two decimal places.
1. Calculate the balance in the account in 5 years assuming the interest is compounded annually.
2. Determine how much interest will be earned on the account in 7 years if interest is compounded annually.
3. Calculate the balance in the account in 5 years assuming the 8% interest is compounded quarterly.
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