Apply the Time Value of Money in the Following Independent

question 18

Essay

Apply the time value of money in the following independent situations:
1. Margaret Carlson made a deposit in the bank on January 1, 2008. The bank pays interest at the rate of 8% compounded annually. On January 1, 2015, the deposit has accumulated to $40,000. How much money did Margaret originally deposit on January 1, 2008?
2. Claude Cooper deposited $15,600 in the bank on January 1 a few years ago. The bank pays an interest rate of 10% compounded annually, and the deposit is now worth $40,420. For how many years has the deposit been invested?

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Definitions:

Provincial Legislation

Laws and regulations enacted by the legislative bodies of provinces or territories within a federal system, addressing regional matters.

Actual Authority

The express and implied powers given to an agent by a principal, allowing them to make legally binding decisions on the principal’s behalf.

Apparent Authority

Apparent authority refers to a situation where someone reasonably believes another has the authority to act on behalf of an organization due to the organization's actions or communications.

Principal

The primary individual or entity involved in a transaction or contract, or a sum of money lent or invested on which interest is paid.