Compute the future value and the compound interest earned for each of the following investments. Use Tables 16-1A&B or a calculator.

Compound Interest

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

The value of an investment at a specified future date, taking into account factors like interest rates and compounding.

Gain insight into the concept of future value and how its calculation is performed.
Capture the essence of compound interest and the steps for calculating it.
Train in the application of financial tables and calculators for determining future values and compound interest.

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Final Answer :

Learning Objectives

Gain insight into the concept of future value and how its calculation is performed.
Capture the essence of compound interest and the steps for calculating it.
Train in the application of financial tables and calculators for determining future values and compound interest.