If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1.281.60

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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If an initial investment of $1,000 is invested at 8% interest per year
with semi-annual compounding, how much would be in the
account after five years?
A. $1,081.60
B. $1,061.66
C. $1,051.00
D. $1,281.60
The difference between the present and future worth of money at
some time in the future is called
A. Discount
B. Deduction
C. Inflation
D. Depletion
Transcribed Image Text:If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1,281.60 The difference between the present and future worth of money at some time in the future is called A. Discount B. Deduction C. Inflation D. Depletion
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