Question - Future Values
Use Future Value Tables or your calculator to complete the requirements below. On January 1, Beth Woods made a single deposit of $8,000 in an investment account that earns 8% interest.
Required: Round your answers to the nearest cent.
1. Calculate the balance in the account in 5 years assuming the interest is compounded annually.
2. Determine how much interest will be earned on the account in 7 years if interest is compounded annually.
3. Calculate the balance in the account in 5 years assuming the 8% interest is compounded quarterly.