Amount accumulated when interest is compounded annually
Problem: A deposit of $7,000 is made on January 1, 2008. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2013, assuming that interest is compounded (a) annually (b) semiannually (c) quarterly?
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Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years.
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How much will be accumulated on January 1, 2013, assuming that interest is compounded (a) annually (b) semiannually (c) quarterly?
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