Calculate the future value of $8,000 deposited in a bank for 5 years at 8% inter

Question

Calculate the future value of $8,000 deposited in a bank for 5 years at 8% interest under each of the following compounding arrangements: A. Annual B. Semiannual( twice per year) C. Quarterly( four times per year) Calculate the future value of $8,000 deposited in a bank for 5 years at 8% interest under each of the following compounding arrangements: A. Annual B. Semiannual( twice per year) C. Quarterly( four times per year) A. Annual B. Semiannual( twice per year) C. Quarterly( four times per year)

Explanation / Answer

future value=Cash flow at period 0(1+R)^N

A. Annual- future value-8000(1+.08)^5

=11,754.62

B Semi Annual= future value=8000(1+.08)^10

=11,841.95

C Quaterly= future value=8000(1+.08)^20 =11887.58

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