Calculate answers to the following scenarios using present value tables: a. If $100 is deposited into an account paying 8 percent simple interest, what will be the value of the account in 5 years? b. If an accumulation of $8,000 is desired at the end of
4 years, what amount must be deposited now to accomplish that goal, assuming 12 percent interest compounded annually? c. What is the present value of $300 received at the end of each year for 4 years, assuming 9 percent interest compounded annually? d. What amount must be deposited at the bank today to grow to $10,000 in 5 years, assuming 14 percent interest compounded semiannually?
a. $140 [(100 x 0.08 x 5 ) + $100]
b. $5,088 [8,000 x 0.636 (PV of $1)]
c. $972 [300 x 3.240 (PV of O.A.)]
d. $5,080 [10,000 x 0.508 (PV of $1 @ n = 10, i = 7%)]
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