Answered: Use Table 11-1 to calculate the compound amount (in $) on an investment of $5,500 at 8% interest, compounded semiannually, for 18 years. (Round your answer to…

Essentials Of Investments

11th Edition

ISBN: 9781260013924

Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher: Mcgraw-hill Education,

See similar textbooks

Related questions

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Future Value = Present Value x (1 + r)^n

Q: What is the compound amount and compound interest of $36,000 invested at 12% com-…

A: Compound interest: this is used in case of lump-sum money accumulates in the future if interest is…

Q: Use Table 11-1 to calculate the compound amount (in $) on an investment of $3,500 at 10% interest,…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: _________ Determine the accumulated investment amount for A’s investment for the 10-year period…

A: The concept being illustrated in this problem is the time value of money, which is the idea that…

Q: Calculate the future value of the following single amounts. (FV of $1. PV of $1. FVA of $1, and PVA…

A: The time value of money refers to the concept in finance which assumes that the worth of money when…

Q: An investment of $7000 at 1% is compounded semiannually for three years. Find the future value and…

A: Formula for Future value: FV = PV (1+R)n PV = present value R = rate of interest n = number of…

Q: Using Table 11-1, compute the amount of compound interest (Ih $) for the investment. (Round your…

A: Principal = $33000 Nominal Rate% = 12 Interest Compounded = monthly

Q: An investor contributes $847.00 per quarter in an account that pays 4.00% APR with quarterly…

A: Quarterly contribution = $847.00APR = 4.00%Number of years = 17 years

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…

A: In finance, the concept of time value states that money today has more purchasing power than the…

Q: 1. Find the future value of a one time investment of $8,000 if the account compounds quarterly at…

A: Future value:Future value (FV) is the idea of how much an investment will be valued at a certain…

Q: Manually calculate the compound amount and compound interest (in $) for the investment. Principal…

A: Future value = Present value * ( 1+ rate )^no. of period

Q: To what amount will the following investment accumulate? $9,328, invested today for 31 years at 3…

A: To calculate the accumulated amount we will use the below formulaAccumulated amount = P*(1+r)nWhereP…

Q: An investment of $1831.00 earned interest semi-annually. If the balance after 5.5 years was…

A: Using excel RATE function

Q: Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. FV of…

A: Present value is a financial concept that refers to the current worth of a future cash flow or a…

Q: Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual…

A: Principle amount = 32000 Interest rate = 12% (Compounded monthly) Time period = 1 year

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

Q: Which of the following amounts is closest to the end value of investing $7,500 for 2 1/2 years at an…

A: As per the question the invested amount (P)= $7500Annual interest rate (r)= 12.36% compounded semi…

Q: Solve for the compound amount and compound interest earned if $ 825 is invested for 10 years at 4%…

A: The future value is the amount that will be received at the end of a certain period. The future…

Q: A debt of $5250.56 is repaid by payments of $1085.37 in 4 months, $1063.35 in 13 months, and a final…

A: Here,Question 1:ParticularsValuesPresent value of debt $ 5,250.56Amount repaid after 4…

Q: Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual…

A: Compound interest and simple interest are the two types of interest that either of them can be…

Q: What is the future value of 15 periodic payments of $39,000 each made at the end of each period and…

A: Time Period = 15 Years Payment = $39,000 Interest Rate = 8%

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. …

Question

Use Table 11-1 to calculate the compound amount (in $) on an investment of
$5,500 at 8% interest, compounded semiannually, for 18 years. (Round your
answer to the nearest cent.)

TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest)
Periods
1%
1,%
2%
3%
4%
5%
6%
7%
8%
Periods
1
1.00500
1.01000
1.01500
1.02000
1.03000
1.04000
1.05000
1.06000
1.07000
1.08000
1
2
1.01003
1.02010
1.03023
1.04040
1.06090
1.08160
1.10250
1.12360
1.14490
1.16640
3
1.01508
1.03030
1.04568
1.06121
1.09273
1.12486
1.15763
1.19102
1.22504
1.25971
3
4
1.02015
1.04060
1.06136
1.08243
1.12551
1.16986
1.21551
1.26248
1.31080
1.36049
4
5
1.02525
1.05101
1.07728
1.10408
1.15927
1.21665
1.27628
1.33823
1.40255
1.46933
6.
1.03038
1.06152
1.09344
1.12616
1.19405
1.26532
1.34010
1.41852
1.50073
1.58687
6.
7
1.03553
1.07214
1.10984
1.14869
1.22987
1.31593
1.40710
1.50363
1.60578
1.71382
7
8.
1.04071
1.08286
1.12649
1.17166
1.26677
1.36857
1.47746
1.59385
1.71819
1.85093
8.
9
1.04591
1.09369
1.14339
1.19509
1.30477
1.42331
1.55133
1.68948
1.83846
1.99900
9
10
1.05114
1.10462
1.16054
1.21899
1.34392
1.48024
1.62889
1.79085
1.96715
2.15892
10
11
1.05640
1.11567
1.17795
1.24337
1.38423
1.53945
1.71034
1.89830
2.10485
2.33164
11
12
1.06168
1.12683
1.19562
1.26824
1.42576
1.60103
1.79586
2.01220
2.25219
2.51817
12
13
1.06699
1.13809
1.21355
1.29361
1.46853
1.66507
1.88565
2.13293
2.40985
2.71962
13
14
1.07232
1.14947
1.23176
1.31948
1.51259
1.73168
1.97993
2.26090
2.57853
2.93719
14
15
1.07768
1.16097
1.25023
1.34587
1.55797
1.80094
2.07893
2.39656
2.75903
3.17217
15
16
1.08307
1.17258
1.26899
1.37279
1.60471
1.87298
2.18287
2.54035
2.95216
3.42594
16
17
1.08849
1.18430
1.28802
1.40024
1.65285
1.94790
2.29202
2.69277
3.15882
3.70002
17
18
1.09393
1.19615
1.30734
1.42825
1.70243
2.02582
2.40662
2.85434
3.37993
3.99602
18
19
1.09940
1.20811
1.32695
1.45681
1.75351
2.10685
2.52695
3.02560
3.61653
4.31570
19
20
1.10490
1.22019
1.34686
1.48595
1.80611
2.19112
2.65330
3.20714
3.86968
4.66096
20
21
1.11042
1.23239
1.36706
1.51567
1.86029
2.27877
2.78596
3.39956
4.14056
5.03383
21
22
1.11597
1.24472
1.38756
1.54598
1.91610
2.36992
2.92526
3.60354
4.43040
5.43654
22
23
1.12155
1.25716
1.40838
1.57690
1.97359
2.46472
3.07152
3.81975
4.74053
5.87146
23
24
1.12716
1.26973
1.42950
1.60844
2.03279
2.56330
3.22510
4.04893
5.07237
6.34118
24
25
1.13280
1.28243
1.45095
1.64061
2.09378
2.66584
3.38635
4.29187
5.42743
6.84848
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
1.09000
1.10000
1.11000
1.12000
1.13000
1.14000
1.15000
1.16000
1.17000
1.18000
1
1.18810
1.21000
1.23210
1.25440
1.27690
1.29960
1.32250
1.34560
1.36890
1.39240
3
1.29503
1.33100
1.36763
1.40493
1.44290
1.48154
1.52088
1.56090
1.60161
1.64303
3
4
1.41158
1.46410
1.51807
1.57352
1.63047
1.68896
1.74901
1.81064
1.87389
1.93878
1.53862
1.61051
1.68506
1.76234
1.84244
1.92541
2.01136
2.10034
2.19245
2.28776
6.
1.67710
1.77156
1.87041
1.97382
2.08195
2.19497
2.31306
2.43640
2.56516
2.69955
7
1.82804
1.94872
2.07616
2.21068
2.35261
2.50227
2.66002
2.82622
3.00124
3.18547
7
1.99256
2.14359
2.30454
2.47596
2.65844
2.85259
3.05902
3.27841
3.51145
3.75886
2.17189
2.35795
2.55804
2.77308
3.00404
3.25195
3.51788
3.80296
4.10840
4.43545
10
2.36736
2.59374
2.83942
3.10585
3.39457
3.70722
4.04556
4.41144
4.80683
5.23384
10
11
2.58043
2.85312
3.15176
3.47855
3.83586
4.22623
4.65239
5.11726
5.62399
6.17593
11
12
2.81266
3.13843
3.49845
3.89598
4.33452
4.81790
5.35025
5.93603
6.58007
7.28759
12
13
3.06580
3.45227
3.88328
4.36349
4.89801
5.49241
6.15279
6.88579
7.69868
8.59936
13
14
3.34173
3.79750
4.31044
4.88711
5.53475
6.26135
7.07571
7.98752
9.00745
10.14724
14
15
3.64248
4.17725
4.78459
5.47357
6.25427
7.13794
8.13706
9.26552
10.53872
11.97375
15
16
3.97031
4.59497
5.31089
6.13039
7.06733
8.13725
9.35762
10.74800
12.33030
14.12902
16
17
4.32763
5.05447
5.89509
6.86604
7.98608
9.27646
10.76126
12.46768
14.42646
16.67225
17
18
4.71712
5.55992
6.54355
7.68997
9.02427
10.57517
12.37545
14.46251
16.87895
19.67325
18
19
5.14166
6.11591
7.26334
8.61276
10.19742
12.05569
14.23177
16.77652
19.74838
23.21444
19
20
5.60441
6.72750
8.06231
9.64629
11.52309
13.74349
16.36654
19.46076
23.10560
27.39303
20
21
6.10881
7.40025
8.94917
10.80385
13.02109
15.66758
18.82152
22.57448
27.03355
32.32378
21
22
6.65860
8.14027
9.93357
12.10031
14.71383
17.86104
21.64475
26.18640
31.62925
38.14206
22
23
7.25787
8.95430
11.02627
13.55235
16.62663
20.36158
24.89146
30.37622
37.00623
45.00763
23
24
7.91108
9.84973
12.23916
15.17863
18.78809
23.21221
28.62518
35.23642
43.29729
53.10901
24
25
8.62308
10.83471
13.58546
17.00006
21.23054
26.46192
32.91895
40.87424
50.65783
62.66863
25
The values in Table 11-1 were generated by the formula FV = (1 + i)" rounded to five decimal places, where i is the interest
rate per period and n is the total number of periods.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution

See solution Check out a sample Q&A here

Introduction

VIEW

Working and computation

VIEW

Conclusion

VIEW

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:9781260013962

Author:BREALEY

Publisher:RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:9781337909730

Author:Brigham

Publisher:Cengage

Foundations Of Finance

Finance

ISBN:9780134897264

Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:Pearson,

Fundamentals of Financial Management (MindTap Cou...

Finance

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i...

Finance

ISBN:9780077861759

Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:McGraw-Hill Education

SEE MORE TEXTBOOKS

Use Table 11-1 to calculate the compound amount (in $) on an investment of $5,500 at 8% interest, compounded semiannually, for 18 years. (Round your answer to the nearest cent.)

Related questions

Concept explainers