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?