Question: Present Value and Future Value The following situations require the application of the time value of money: 1. On January 1, 2014, $16,000 is deposited.

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: 1. On January 1, 2014, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2019, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. 2. Assume that a deposit made on January 1, 2014, earns 8% interest. The deposit plus interest accumulated to $20,000 on January 1, 2019. How much was invested on January 1, 2014, if interest was compounded (a) annually, (b) semiannually, and (c) quarterly

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