Google Answers Logo
View Question
Q: Accounting question (future value) ( Answered 5 out of 5 stars,   0 Comments )
Subject: Accounting question (future value)
Category: Business and Money > Accounting
Asked by: steph21480-ga
List Price: $2.00
Posted: 27 Nov 2006 05:32 PST
Expires: 27 Dec 2006 05:32 PST
Question ID: 785900
If $4,000 is deposited annually starting on January 1, 2007, and it
earns 9%, how much will accumulate by December 31, 2016?
Subject: Re: Accounting question (future value)
Answered By: omnivorous-ga on 27 Nov 2006 07:12 PST
Rated:5 out of 5 stars
Steph21480 --

The $4,000 will be on deposit nine full years, making the calculation
$4,000 * (1.09)^9.

Paid as simple interest, as a bond -- with no compounding -- it would
be $8687.57.  However, if the interest compounds (as it would in most
savings or money market accounts), the amount would be $9469.45.

"Compound interest" (Nov. 23, 2006)

Best regards,

steph21480-ga rated this answer:5 out of 5 stars and gave an additional tip of: $1.00
Omnivorous was quick and helpful in showing how s/he came to the
answer. Greatly appreciated!

There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy