Find the amount to which $700 will grow under each of these conditions: a. 8% compounded...
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Find the amount to which $700 will grow under each of these conditions: a. 8% compounded annually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. 8% compounded semiannually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. LA c. 8% compounded quarterly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. d. 8% compounded monthly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ e. 8% compounded daily for 3 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent. $ f. Why does the observed pattern of FVs occur? The future values increase because as compounding periods per year increase, interest is earned on interest more frequently. Find the amount to which $700 will grow under each of these conditions: a. 8% compounded annually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. 8% compounded semiannually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. LA c. 8% compounded quarterly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. d. 8% compounded monthly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ e. 8% compounded daily for 3 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent. $ f. Why does the observed pattern of FVs occur? The future values increase because as compounding periods per year increase, interest is earned on interest more frequently.
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To calculate the future value under different compounding conditions we can use the formula for comp... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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