Calculating future values, Financial Accounting

Show all support work for your calculations.

1.  Simple Interest versus Compound Interest [LO1]  First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually.  If you made a $6,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of nine years?

2.  Calculating Future Values [LO1] For each of the following, compute the future value:

Present Value

Years

Interest Rate

Future Value

$    2,250

11

13%

 

       8,752

 7

  9%

 

     76,355

14

12%

 

   183,796

 8

  6%

 

 

 

Posted Date: 3/29/2013 4:07:20 AM | Location : United States







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