Chapter 11.I, Problem 9RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Manually calculate the compound amount and compound interest for the following investments.

Principal Time Nominal Interest Compound Compound

Period (years) Rate (%) Compounded Amount Interest

__________________________________________________________________________

$10,000 1 4 quarterly _______ _________

To determine

**To calculate:** The compound amount and the compound interest for given investments 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:

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

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

**Calculation:**

Consider the 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:

Calculate the interest rate per period 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

Multivariable Calculus

Finite Mathematics and Applied Calculus (MindTap Course List)

Understanding Basic Statistics

Calculus: Early Transcendentals

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

Probability and Statistics for Engineering and the Sciences

Calculus: Early Transcendental Functions

Elementary Geometry For College Students, 7e

Mathematical Applications for the Management, Life, and Social Sciences

Single Variable Calculus

Calculus (MindTap Course List)

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

Mathematical Excursions (MindTap Course List)

Intermediate Algebra

Finite Mathematics

Calculus: An Applied Approach (MindTap Course List)

Elementary Technical Mathematics

Precalculus: Mathematics for Calculus (Standalone Book)

Statistics for The Behavioral Sciences (MindTap Course List)

Single Variable Calculus: Early Transcendentals, Volume I

Essentials Of Statistics

Trigonometry (MindTap Course List)

Calculus: Early Transcendental Functions (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Calculus of a Single Variable

Elements Of Modern Algebra

Study Guide for Stewart's Multivariable Calculus, 8th

Finite Mathematics for the Managerial, Life, and Social Sciences

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

Elementary Geometry for College Students

Mathematics For Machine Technology

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Mathematics: A Practical Odyssey

Multivariable Calculus

Calculus (MindTap Course List)

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

Research Methods for the Behavioral Sciences (MindTap Course List)

College Algebra (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT