Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Principal Period (years) Nominal Rate (%) Interest Compounded $26,000 11 5 annually $ Compound Amount Compound Interest $

Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Principal Period (years) Nominal Rate (%) Interest Compounded $26,000 11 5 annually $ Compound Amount Compound Interest $

Essentials Of Investments

11th Edition

ISBN:9781260013924

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

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

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following investment requires table factors for periods beyond the table. Using Table 11-1, create the new table factor, rounded to five places, and calculate the compound amount (in $, rounded to the nearest cent.) Time Nominal Interest New Table Compound Principal Period (years) Rate (%) Compounded Factor Amount $17,000 29 annually $ Need Help? Read It
A one-time investment is made in the amount of $9,200 for 15 years at an APR of 6%. Compound Interest: , where is the final amount, is the principal invested, is the interest rate per compounding period, and is the number of compounding periods. Compounded Principal Interest Rate per Compounding Period Number of Compounding Periods Write the Compound Interest Formula Final Amount Annually $9,200 6% 15 ? = 9,200(1 + 0.06)^15 $22,048.34 Semi-Annually $9,200 Quarterly $9,200 Monthly $9,200 Weekly $9,200 Daily $9,200
Calculate the present value of the following single amounts. Future Value Annual Rate Interest Compounded Period Invested 1. $10,000 6% Annually 5 years 2. 7,000 8 Semiannually 8 years 3. 6,000 12 Quarterly 4 years
Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %
Find (a) the compound amount and (t) the compound interest rate for the yven Investment and annual rate. $8000 for 2 years at 5% compounded annually The compound amount in the account after 2 years is $3509.58 The compound interest earned is $509.58 The compound amount in the account after 2 years is $8820.00 The compound interest earned is $820 The compound amount in the account after 2 years is $4866.61 The compound interest earned is $866.61 The compound amount in the account after 2 years is $8820.00 The compound interest earned is $820
Using Table 11-2 from your text, calculate the present value (principal) and the compound interest given: A = Compound Amount = $1,250 t = Term of Investment = 6 years r = Nominal rate = 6% or 0.06 n = Interest is compounded semiannually = 2
Complete the following using compound future value. (Use the Table provided.) Time Principal Rate Compounded Amount Interest 6 months $15,000 6 % Semiannually
You have taken a loan of $84, 000.00 for 25 years at 5.5% compounded quarterly. Fill in the table below: (Round all answers to 2 decimal places.) \table[[Payment number, Payment amount, Principal Amount, Interest, Balance.], [0),... S 84,000.00,1,1), vdots....S.
Find the total number of compounding periods and the interest rate per period for the investment. Term ofInvestment Nominal(Annual) Rate (%) InterestCompounded CompoundingPeriods Rate perPeriod (%) 4 years 4.5 semiannually
For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of interest b) the periods rate of interest c) the compunding factors d) the numerical value of compounding factors
If $100,000 is invested at 5.0% annual interest, compounding monthly, what is the balance after 3 years? a. $133,333 b. $152,120 c. $161,472 d. $159,124
Compound Interest Table Complete the following schedule for investments a through f by indicating the relevant factor from the present value or future value table and the final present or future value amount. Investment Compounding a. Annuity b. Annuity Annually Semiannually Semiannually Annually c. Annuity d. Single Payment e. Single Payment Semiannually f. Single Payment Semiannually Factor Answer $ a. $ Annual Interest Rate Amount 5% $2,000 4% 1,000 6% 14,000 •Note: Round your answers to the nearest whole dollar. •Note: Do not use a negative sign (-) with your answers. b. 5% 9,000 6% 16,000 4% 9,600 $ C. Investment $ Period d. $ Payment at Beg. or End e. of Period 2 years End 3 years Beginning 4 years Beginning 6 years n/a 5 years n/a 4 years n/a $ f. Future Value or Present Value Future Present Future Present Future Present

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