Gordon and Susan Have a Regular Savings Plan and Have

question 59

Essay

Gordon and Susan have a regular savings plan and have accumulated $8,000.How much will this be worth in 10 years if they can earn 2% on the money.They are not planning to add to this savings account.(Show all work.)

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Cash Flow Statement

A financial report that tracks the amount of cash and cash equivalents entering and leaving a company.

Amortization

The process of gradually writing off the initial cost of an asset over a period, often used for intangible assets like patents and copyrights.

Bond Discount

The difference between the face value of a bond and the price for which it sells when the selling price is lower than its face value.