Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Appendix D - Time Value of Money - Brief Exercises: BED-7

Answer

The future value is $14,367.

Work Step by Step

Compute the future value using a principal amount of 8000, earning 5% per year compounded for 12 years. $FV=8000\times(1+0.05)^{12}=14,367$
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