Chapter 11.I, Problem 14RE

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 investment.

Principal Time Nominal Interest Compound Compound

Period (years) Rate (%) Compounded Amount Interest

___________________________________________________________________________

$5,300 3 8 quarterly _______ _________

To determine

**To calculate:** The compound amount and the compound interest for the investment with principal

Explanation

**Given information:**

An investment with principal

**Formula used:**

Compounding period can be defined as the duration or length of time from one interest payment to the next. If an investment made for 4 years at

Here, *m* is the period per year.

The interest rate per period can be calculated by dividing the annual, or nominal, rate by the number of periods per year,

The compound amount (Future value) can be calculated by the formula given below:

In table 11-1, the table factor is the intersection of the rate-per-period column and the number-of-periods row is the future value of

The compound interest can be calculated by the formula given below:

**Calculation:**

Consider the statement as “An investment with principal

Since, the variables- principal, time period (years), nominal rate and interest compounded are given; therefore, the compounding period can be calculated as below:

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

Statistics for The Behavioral Sciences (MindTap Course List)

Mathematical Excursions (MindTap Course List)

Mathematical Applications for the Management, Life, and Social Sciences

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

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

Calculus: An Applied Approach (MindTap Course List)

Understanding Basic Statistics

Single Variable Calculus: Early Transcendentals, Volume I

Calculus: Early Transcendentals

Elementary Geometry For College Students, 7e

Finite Mathematics and Applied Calculus (MindTap Course List)

Multivariable Calculus

Applied Calculus

Probability and Statistics for Engineering and the Sciences

Intermediate Algebra

Essentials Of Statistics

Elementary Technical Mathematics

Calculus: Early Transcendental Functions

Calculus (MindTap Course List)

Single Variable Calculus

Finite Mathematics

Precalculus: Mathematics for Calculus (Standalone Book)

Calculus: Early Transcendental Functions (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Trigonometry (MindTap Course List)

Calculus of a Single Variable

Elements Of Modern Algebra

Elementary Geometry for College Students

Finite Mathematics for the Managerial, Life, and Social Sciences

Study Guide for Stewart's Multivariable Calculus, 8th

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

Introduction To Statistics And Data Analysis

Research Methods for the Behavioral Sciences (MindTap Course List)

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

Research Methods for the Behavioral Sciences (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Multivariable Calculus

Mathematics For Machine Technology

College Algebra (MindTap Course List)

Mathematics: A Practical Odyssey

Calculus (MindTap Course List)