Chapter 11.I, Problem 40RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

The FernRod Motorcycle Company invested $250,000 at 4.5% compounded monthly to be used for the expansion of their manufacturing facilities. How much money will be available for the project in

To determine

**To calculate:** The available money for the project when investment has the principal

Explanation

**Given information:**

An investment with the 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:

Here, *P* is the principal, *i* is the rate per period and *n* is the compounding period.

**Calculation:**

Consider the statement as “An investment with the principal

Since, the variables- principal, the time period in years,

Nominal rate and interest compounded are given

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

Finite Mathematics

Probability and Statistics for Engineering and the Sciences

Calculus (MindTap Course List)

Multivariable Calculus

Calculus: Early Transcendentals

Mathematical Applications for the Management, Life, and Social Sciences

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

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

Finite Mathematics and Applied Calculus (MindTap Course List)

Precalculus: Mathematics for Calculus (Standalone Book)

Elementary Technical Mathematics

Essentials Of Statistics

Applied Calculus

Mathematical Excursions (MindTap Course List)

Single Variable Calculus: Early Transcendentals, Volume I

Statistics for The Behavioral Sciences (MindTap Course List)

Single Variable Calculus

Intermediate Algebra

Elementary Geometry For College Students, 7e

Calculus: An Applied Approach (MindTap Course List)

Calculus: Early Transcendental Functions

Understanding Basic Statistics

Elements Of Modern Algebra

Single Variable Calculus: Early Transcendentals

Trigonometry (MindTap Course List)

Calculus of a Single Variable

Calculus: Early Transcendental Functions (MindTap Course List)

Finite Mathematics for the Managerial, Life, and Social Sciences

Elementary Geometry for College Students

Study Guide for Stewart's Multivariable Calculus, 8th

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

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Multivariable Calculus

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Research Methods for the Behavioral Sciences (MindTap Course List)

College Algebra (MindTap Course List)

Mathematics For Machine Technology

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

Calculus (MindTap Course List)