Calculate answers to the following using future value and/or present value tables:

a. If an accumulation of $1,000 is desired at the end of 4 years, what bank deposit must be made now to accomplish that goal, assuming 10 percent interest compounded annually?
b. A deposit of $600 made at the end of every 6 months for 5 years would grow to what amount, assuming 8 percent interest compounded semiannually.


a. $683.00 [($1,000 x 0.683 (PV of $1)]
b. $4866.60 [($600 x 8.111 (FV of O.A. @ n = 10, i = 4%)]

Business

You might also like to view...

When determining delivery of a message, a general rule of thumb is "the sooner the better."

Indicate whether the statement is true or false.

Business

The balanced scorecard approach complements measures of past performance with measures of the drivers of future performance

Indicate whether the statement is true or false

Business

The director of a professional organization who asks for a report on developing an online newsletter for members may request a justification report to support the recommended decision

Indicate whether the statement is true or false

Business

Given the pressures for consistency among subsidiaries in the international form, the ______ suggests that standardization of policies is used to reduce the complexity and uncertainty inherent in the control of international operations.

A. imperative for control B. incompatibility of the partners C. value creation D. double-layered acculturation

Business