   Chapter 11.II, Problem 7TIE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

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

# Calculate a new table factor and find the present value of $8,500 if the interest rate is 6 % compounded quarterly for 10 years. To determine To calculate: A new table factor and the present value of$8,500, if the interest rate is 6% compounded quarterly for 10 years.

Explanation

Given information:

The compound Amount is $8,500. The interest rate is 6%. The period is 10 years. Formula used: Steps for creating new table factors: Step I: For the stated rate per period, find the two table factors that represent half, or values as close as possible to half, of the periods required. Step II: Multiply the two table factors from Step I to form the new factor. Step III: Round the new factor to five decimal places. Present Value: Present Value = Table Factor × Compounded Amount Calculation: The provided interest rate 6% compounded quarterly, The interest should be used as 112% per period as, 64=112% The period will be taken as 40 periods as, 10×4=40 periods Thus, the revised information will be as follows: The compound Amount is$8,500.

The interest rate is 112%.

The period is 40 years.

At 6% interest compounded quarterly, the rate per period is 112%. As total periods are 40, table factor will be used for 20 and 20 periods at 112% because present value table only provides table factor until 25 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

#### Differentiate the function. f(x) = log10(1 + cos x)

Single Variable Calculus: Early Transcendentals, Volume I

#### cosh 0 = a) 0 b) 1 c) e22 d) is not defined

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

#### True or False: converges.

Study Guide for Stewart's Multivariable Calculus, 8th

#### Explain the difference between passive and active deception.

Research Methods for the Behavioral Sciences (MindTap Course List) 