Solve the following word problems by using Table 11-1 or 11-2. When necessary, create new table factors. Round dollars to the nearest cent and percents to the nearest hundredth of a percent. Over the past 10 years, you’ve made the following investments: Deposited $10,000 at 8 % compounded semiannually in a 3-year certificate of deposit. After 3 years, you took the maturity value (principal and interest) of that CD and added another $5,000 to buy a 4-year, 6 % certificate compounded quarterly. When that certificate matured, you added another $8,000 and bought a 3-year, 7 % certificate compounded annually. a. What was the total worth of your investment when the last certificate matured? b. What is the total amount of compound interest earned over the 10-year period?

BuyFind

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
Publisher: Cengage Learning
ISBN: 9781305585447
BuyFind

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
Publisher: Cengage Learning
ISBN: 9781305585447

Solutions

Chapter
Section
Chapter 11, Problem 25AT
Textbook Problem

Solve the following word problems by using Table 11-1 or 11-2. When necessary, create new table factors. Round dollars to the nearest cent and percents to the nearest hundredth of a percent.

Over the past 10 years, you’ve made the following investments:

Deposited $10,000 at 8 % compounded semiannually in a 3-year certificate of deposit.

After 3 years, you took the maturity value (principal and interest) of that CD and added another $5,000 to buy a 4-year, 6 % certificate compounded quarterly.

When that certificate matured, you added another $8,000 and bought a 3-year, 7 % certificate compounded annually.

a. What was the total worth of your investment when the last certificate matured?

b. What is the total amount of compound interest earned over the 10-year period?

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Chapter 11 Solutions

Contemporary Mathematics for Business & Consumers
Ch. 11.I - For the following investments, find the total...Ch. 11.I - For the following investments, find the total...Ch. 11.I - Manually calculate the compound amount and...Ch. 11.I - Manually calculate the compound amount and...Ch. 11.I - Manually calculate the compound amount and...Ch. 11.I - Manually calculate the compound amount and...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - Using Table 11-1, calculate the compound amount...Ch. 11.I - The following investments require table factors...Ch. 11.I - The following investments require table factors...Ch. 11.I - The following investments require table factors...Ch. 11.I - The following investments require table factors...Ch. 11.I - The following investments require table factors...Ch. 11.I - For the following investments, compute the amount...Ch. 11.I - For the following investments, compute the amount...Ch. 11.I - For the following investments, compute the amount...Ch. 11.I - For the following investments, compute the amount...Ch. 11.I - For the following investments, compute the amount...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following word problems by using Table...Ch. 11.I - Solve the following exercises and word problems by...Ch. 11.I - Solve the following exercises and word problems by...Ch. 11.I - Solve the following exercises and word problems by...Ch. 11.I - Solve the following exercises and word problems by...Ch. 11.I - 39. Gabriel Hopen, a 32-year-old commercial...Ch. 11.I - 40. The FernRod Motorcycle Company invested...Ch. 11.II - Count Gustav wants to renovate his castle in...Ch. 11.II - Calculate a new table factor and find the present...Ch. 11.II - Sam and Rosa Alonso want to accumulate $30,000, 17...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - For the following investments, calculate the...Ch. 11.II - The following investments require table factors...Ch. 11.II - The following investments require table factors...Ch. 11.II - The following investments require table factors...Ch. 11.II - The following investments require table factors...Ch. 11.II - The following investments require table factors...Ch. 11.II - Solve the following word problems by using table...Ch. 11.II - Solve the following word problems by using Table...Ch. 11.II - Solve the following word problems by using table...Ch. 11.II - Solve the following word problems by using table...Ch. 11.II - Solve the following word problems by using Table...Ch. 11.II - Solve the following word problems by using table...Ch. 11.II - Solve the following word problems by using table...Ch. 11.II - Solve the following exercises and word problems by...Ch. 11.II - Solve the following exercises and word problems by...Ch. 11.II - Solve the following exercises and word problems by...Ch. 11.II - Solve the following exercises and word problems by...Ch. 11.II - 27. Alana and Eva Rodriguez are planning a...Ch. 11.II - 28. Mike Gioulis would like to have $25,000 in 4...Ch. 11.II - You are the finance manager for Olympia...Ch. 11 - 1. Interest calculated solely on the principal is...Ch. 11 - The concept that money now, or in the present, is...Ch. 11 - The total amount of principal and accumulated...Ch. 11 - An amount of money that must be deposited today at...Ch. 11 - The amount of compound interest is calculated by...Ch. 11 - 6. Compound interest is actually the _______...Ch. 11 - 7. A compound interest table is a useful set of...Ch. 11 - A shortcut method for calculating approximately...Ch. 11 - Write the formula for calculating the number of...Ch. 11 - Write the formula for calculating the interest...Ch. 11 - Newly created table factors for compound interest...Ch. 11 - The annual percentage yield (APY) is equal to the...Ch. 11 - When using the compound interest table or the...Ch. 11 - 14. To use the compound interest formula and the...Ch. 11 - Using Table 11-1, calculate the compound amount...Ch. 11 - Using Table 11-1, calculate the compound amount...Ch. 11 - Using Table 11-1, calculate the compound amount...Ch. 11 - Using Table 11-1, calculate the compound amount...Ch. 11 - The following investments require table factors...Ch. 11 - The following investments require table factors...Ch. 11 - For the following investments, compute the amount...Ch. 11 - For the following investments, compute the amount...Ch. 11 - Calculate the present value (principal) and the...Ch. 11 - Calculate the present value (principal) and the...Ch. 11 - Calculate the present value (principal) and the...Ch. 11 - Calculate the present value (principal) and the...Ch. 11 - The following investments require table factors...Ch. 11 - The following investments require table factors...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following word problems by using Table...Ch. 11 - Solve the following exercises and word problems...Ch. 11 - Solve the following exercises and word problems...Ch. 11 - Solve the following exercises and word problems...Ch. 11 - Solve the following exercises and word problems...Ch. 11 - Principal Term of Investment Nominal Rate...Ch. 11 - Principal Term of Investment Nominal Rate...Ch. 11 - Principal Term of Investment Nominal Rate (%)...Ch. 11 - Principal Term of Investment Nominal Rate (%)...Ch. 11 - 36. What is the compound amount and compound...Ch. 11 - Jorge Rodriguez would like to pay off his condo...Ch. 11 - Quinn and Julius inherited $50,000 each from their...Ch. 11 - 39. Greg and Verena Sava need $20,000 in 3 years...

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