If You Deposit $100 into an Account That Pays 5

question 10

Essay

If you deposit $100 into an account that pays 5% APR compounded semiannually, what
would be the value in the account after 30 years?

---

Definitions:

Net Asset Valuation

A method of valuing a company or an investment fund, calculated by subtracting total liabilities from total assets.

Net Income Determination

The process of calculating a company's total earnings after subtracting all expenses, including taxes and costs, from total revenues.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Cash Basis

An accounting method where revenues are recognized when cash is received and expenses are recognized when paid.