The four people below have the following investments. Invested Amount Interest Rate Jerry Elaine $12,300 15,300 12% 8 Compounding Quarterly Semiannually George Kramer 22,300 18,300 7 Annually 9 Annually Required: 1-a. Calculate the future value at the end of five years. (FV of $1, PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation?

The four people below have the following investments. Invested Amount Interest Rate Jerry Elaine $12,300 15,300 12% 8 Compounding Quarterly Semiannually George Kramer 22,300 18,300 7 Annually 9 Annually Required: 1-a. Calculate the future value at the end of five years. (FV of $1, PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The four people below have the following investments.
Invested
Amount
Interest
Rate
Compounding
Jerry
Elaine
$12,300
12%
Quarterly
15,300
8
Semiannually
George
22,300
7
Annually
Kramer
18,300
9
Annually
Required:
1-a. Calculate the future value at the end of five years. (EV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Who has the greatest investment accumulation?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Calculate the future value at the end of five years. (Use tables, Excel, or a financial calculator. Round your answers to 2
decimal places.)
Jerry
Elaine
George
Kramer
Future Value

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Step 1: In this step we used the Amount formula:

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