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.
If these cash flows are deposited at 12 percent, what will be their combined future value at the end of year 3?
How much will be accumulated on January 1, 2013, assuming that interest is compounded (a) annually (b) semiannually (c) quarterly?
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