Using the Future Value Tables to Answer the Following Questions

question 62

Essay

Using the future value tables to answer the following questions.
Required:
1) What is the value on January 1, 2021, of $75,000 deposited on January 1, 2014, which accumulates interest at 14% annually?
2) What is the value on January 1, 2020, of $15,000 deposited on July 1, 2014, which accumulates interest at 16% compounded quarterly?
3) What is the compound interest on an investment of $10,000 left on deposit for 7 years at 8% compounded annually?

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Definitions:

Owner's Equity

The residual interest in the assets of an enterprise after deducting its liabilities, often referred to as net assets.

Long-Term Assets

Assets that are expected to provide economic value to a business for more than one year, such as property, plant, and equipment.

Economic Climate

The overall state of the economic environment, characterized by factors such as growth rates, unemployment, inflation, and consumer confidence.

Conditions

Conditions include the specific requirements, terms, or situations that affect or determine the operation of agreements, policies, or actions.