Question: 3.13 Present Value and Future Value The following situations require the application of the time value of money: Use the appropriate present or future value

3.13

3.13 Present Value and Future Value The following situations require the application

Present Value and Future Value The following situations require the application of the time value of money: Use the appropriate present or future value table: FV of $1,PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. On January 1, 2017, $12,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1 , 2022, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. 2. Assume that a deposit made on January 1,2017 , earns 8% interest. The deposit plus interest accumulated to $26,100 on January 1 , 2022 . How much invested or January 1, 2017, if interest was compounded (a) annually, (b) semiannually, and (c) quarterly? Round your answers to the nearest dollar. Present Value and Future Value The following situations require the application of the time value of money: Use the appropriate present or future value table: FV of $1,PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. On January 1, 2017, $12,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1 , 2022, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. 2. Assume that a deposit made on January 1,2017 , earns 8% interest. The deposit plus interest accumulated to $26,100 on January 1 , 2022 . How much invested or January 1, 2017, if interest was compounded (a) annually, (b) semiannually, and (c) quarterly? Round your answers to the nearest dollar

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