BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

The following investments require table factors for periods beyond the table. Create the new table factor and calculate the compound amount for each.

Principal Time Period (years) Nominal Rate (%) Interest Compounded New Table Factor Compound Interest
$20,000 11 8 quarterly _______ _______

To determine

To calculate: The new table factors and the compound amount for the investment of the amount $20,000 made for 11 years at 8% interest compounded quarterly using the table 11-1.

Explanation

Given Information:

An investment with principal amount $20,000 made for 11 years at 8% interest compounded quarterly.

Formula used:

Interest rate per period:

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

Interest rate per period=Nominal ratePeriodperyear

Compounding periods:

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

Compounding period=Years×Periodperyear

Compound amount:

It can be calculated by multiplying the table factor with principal.

Compoundamount(FV)=Tablefactor×Principal

Steps for creating new compound interest table factors:

Step I: For the stated rate per period, first, find the two table factors that signify half, or values as close as possible to half, of the periods required.

Step II: Multiply the two table factors obtained in Step I to form the new factor.

Step III: Now, round the new factor to the five decimal places.

Calculation:

The values of investment are:

Principal: $20,000

Time-period: 11

Nominal rate: 8

Interest compounded: quarterly

Calculate the compounding periods for the investment,

Compounding period=Years×Periodperyear=11×4=44

Calculate the interest rate per period for the investment,

Interest rate per period=Nominal ratePeriodperyear=84=2%

Thus, the investment is looking for table factor for interest rate per period of 2% for 44 periods

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 11 Solutions

Show all chapter solutions add
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

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Draw, in standard position, the angle whose measure is given. 18. 150

Single Variable Calculus: Early Transcendentals, Volume I

In Exercises 90-98, determine whether the statement is true or false. If it is true, explain why it is true. If...

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

Evaluate the expression sin Exercises 116. 52535252

Finite Mathematics and Applied Calculus (MindTap Course List)

Differentiate. F(t)=AtBt2+Ct3

Calculus: Early Transcendentals

49-52 Find f in terms of g f(x)=ln|g(x)|

Calculus (MindTap Course List)

The polar equation of the conic with eccentricity 3 and directrix x = −7 is:

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

Find if , y = sin 2t.

Study Guide for Stewart's Multivariable Calculus, 8th

Graph each ellipse. x2+4y24x+8y+4=0

College Algebra (MindTap Course List)