(Solution) - Present Value and Future Value The following situations involve -(2025 Original AI-Free Solution)

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Present Value and Future Value The following situations involve time value of money calculations:
1. A deposit of $7,000 is made on January 1, 2010. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2015, assuming that interest is compounded
(a) Annually,
(b) Semiannually, and
(c) Quarterly?
2. A deposit is made on January 1, 2010, to earn interest at an annual rate of 8%. The deposit will accumulate to $15,000 by January 1, 2015. How much money was originally deposited assuming that interest is compounded
(a) Annually,
(b) Semiannually, and
(c) Quarterly?