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| 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? |
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| Subject:
Re: Accounting question (future value)
Answered By: omnivorous-ga on 27 Nov 2006 07:12 PST Rated: |
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. Wikipedia "Compound interest" (Nov. 23, 2006) http://en.wikipedia.org/wiki/Compound_interest Best regards, Omnivorous-GA |
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Omnivorous was quick and helpful in showing how s/he came to the answer. Greatly appreciated! |
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