Chapter 11, Problem 2AT

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Using Table 11-1, calculate the compound amount and compound interest for the following investments.

2. |
$7,700 | 5 | 6 | quarterly |

To determine

**To calculate:** The compound amount and compound interest for an investment of

Explanation

**Given Information:**

An investment with principal amount

**Formula used:**

Interest rate per period:

It can be calculated by dividing the annual rate by number of periods in each year.

Compounding periods:

It can be calculated by multiplying the number of years by number of periods in each year.

Compound amount:

It can be calculated by multiplication of the table factor with principal.

Compound Interest:

It can be calculated by subtraction of the principal from compound amount.

Compound Interest table:

This table is a set of factors that represent future values of

Steps for the use of the compound interest table:

Step I: The interest rate per period is computed by scanning across the top row.

Step II: Look below at that column to the row, which is same as the number of periods.

Step III: Find the compound amount by multiplying the table factor which is the intersection of corresponding rate-per-period column and the number-of-periods row.

**Calculation:**

The values of investment are:

Principal:

Time-period:

Nominal rate:

Interest compounded: quarterly

Calculate the interest rate and number of compounding periods.

Substitute the values in the formula for interest rate per period and simplify,

Sect-11.I P-1TIESect-11.I P-2TIESect-11.I P-3TIESect-11.I P-4TIESect-11.I P-5TIESect-11.I P-1RESect-11.I P-2RESect-11.I P-3RESect-11.I P-4RESect-11.I P-5RE

Sect-11.I P-6RESect-11.I P-7RESect-11.I P-8RESect-11.I P-9RESect-11.I P-10RESect-11.I P-11RESect-11.I P-12RESect-11.I P-13RESect-11.I P-14RESect-11.I P-15RESect-11.I P-16RESect-11.I P-17RESect-11.I P-18RESect-11.I P-19RESect-11.I P-20RESect-11.I P-21RESect-11.I P-22RESect-11.I P-23RESect-11.I P-24RESect-11.I P-25RESect-11.I P-26RESect-11.I P-27RESect-11.I P-28RESect-11.I P-29RESect-11.I P-30RESect-11.I P-31RESect-11.I P-32RESect-11.I P-33RESect-11.I P-34RESect-11.I P-35RESect-11.I P-36RESect-11.I P-37RESect-11.I P-38RESect-11.I P-39RESect-11.I P-40RESect-11.II P-6TIESect-11.II P-7TIESect-11.II P-8TIESect-11.II P-1RESect-11.II P-2RESect-11.II P-3RESect-11.II P-4RESect-11.II P-5RESect-11.II P-6RESect-11.II P-7RESect-11.II P-8RESect-11.II P-9RESect-11.II P-10RESect-11.II P-11RESect-11.II P-12RESect-11.II P-13RESect-11.II P-14RESect-11.II P-15RESect-11.II P-16RESect-11.II P-17RESect-11.II P-18RESect-11.II P-19RESect-11.II P-20RESect-11.II P-21RESect-11.II P-22RESect-11.II P-23RESect-11.II P-24RESect-11.II P-25RESect-11.II P-26RESect-11.II P-27RESect-11.II P-28RESect-11.II P-29RECh-11 P-1CRCh-11 P-2CRCh-11 P-3CRCh-11 P-4CRCh-11 P-5CRCh-11 P-6CRCh-11 P-7CRCh-11 P-8CRCh-11 P-9CRCh-11 P-10CRCh-11 P-11CRCh-11 P-12CRCh-11 P-13CRCh-11 P-14CRCh-11 P-1ATCh-11 P-2ATCh-11 P-3ATCh-11 P-4ATCh-11 P-5ATCh-11 P-6ATCh-11 P-7ATCh-11 P-8ATCh-11 P-9ATCh-11 P-10ATCh-11 P-11ATCh-11 P-12ATCh-11 P-13ATCh-11 P-14ATCh-11 P-15ATCh-11 P-16ATCh-11 P-17ATCh-11 P-18ATCh-11 P-19ATCh-11 P-20ATCh-11 P-21ATCh-11 P-22ATCh-11 P-23ATCh-11 P-24ATCh-11 P-25ATCh-11 P-26ATCh-11 P-27ATCh-11 P-28ATCh-11 P-29ATCh-11 P-30ATCh-11 P-31ATCh-11 P-32ATCh-11 P-33ATCh-11 P-34ATCh-11 P-35ATCh-11 P-36ATCh-11 P-37ATCh-11 P-38ATCh-11 P-39AT

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Essentials Of Statistics

Intermediate Algebra

Understanding Basic Statistics

Mathematical Excursions (MindTap Course List)

Calculus (MindTap Course List)

Calculus: Early Transcendental Functions

Single Variable Calculus: Early Transcendentals, Volume I

Calculus: An Applied Approach (MindTap Course List)

Single Variable Calculus

Applied Calculus

Finite Mathematics and Applied Calculus (MindTap Course List)

Calculus: Early Transcendentals

Multivariable Calculus

Statistics for The Behavioral Sciences (MindTap Course List)

Probability and Statistics for Engineering and the Sciences

Elementary Technical Mathematics

Precalculus: Mathematics for Calculus (Standalone Book)

Mathematical Applications for the Management, Life, and Social Sciences

Elementary Geometry For College Students, 7e

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Finite Mathematics

Calculus of a Single Variable

Trigonometry (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Calculus: Early Transcendental Functions (MindTap Course List)

Elements Of Modern Algebra

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Elementary Geometry for College Students

Study Guide for Stewart's Multivariable Calculus, 8th

Finite Mathematics for the Managerial, Life, and Social Sciences

Statistics for Business & Economics, Revised (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Multivariable Calculus

Research Methods for the Behavioral Sciences (MindTap Course List)

Calculus (MindTap Course List)

College Algebra (MindTap Course List)

Mathematics For Machine Technology