Using the future value tables, solve the following: Required 1. What is the value on January 1,

Question:

Using the future value tables, solve the following:

Required

1. What is the value on January 1, 2014 of $40,000 deposited on January 1, 2007 which accumulates interest at 12% compounded annually?

2. What is the value on January 1, 2013 of $10,000 deposited on July 1, 2007 which accumulates interest at 16% compounded quarterly?

3. What is the compound interest on an investment of $6,000 left on deposit for five years at 10% compounded annually?

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...