Question: The following situations involve time value of money calculations: 1. A deposit of $7,000 is made on January 1, 2017. The deposit will earn interest

The following situations involve time value of money calculations:

1. A deposit of $7,000 is made on January 1, 2017. The deposit will earn interest at a rate of

8%. How much will be accumulated on January 1, 2022, assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly?

2. A deposit is made on January 1, 2017, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2022. How much money was originally deposited assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly?

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