Homework Answers
Semi-annual interest rate = 6%/2 = 3%
Semi-annual periods = 6*2 = 12 periods
Present value(1+Interest rate)^number of compounding periods = Future value
Present value(1+3%)^12 = 1,250
Present value = 1250/1.4257608
= $876.72
Hence, Present value = $876.72
Compound interest = 1250 - 876.72 = $373.28
Add Answer to:
Using Table 11-2 from your text, calculate the present value (principal) and the compound interest for...
For the following investment, calculate the present value (principal) and the compound interest. Round your answers...
For the following investment, calculate the present value (principal) and the compound interest. Round your answers to the nearest cent. Compound Amount Term of Investment Nominal Rate (%) Interest Compounded Present Value Compound Interest $130,000 14 years 8 annually $ $
Name Chapter 12 Compound Interest and Present Value Part I Vocabulary Matchup A. Twice a year 1. ...
Name Chapter 12 Compound Interest and Present Value Part I Vocabulary Matchup A. Twice a year 1. Compound 2. Effective rate (APY B. Stated rate 3. Nominal rate C. D. E. F. Four times per year Amount calculated on adjusted principal 12 times per year Years times number of times compounded in one year True rate of interest Know future amount looking for present Rate divided by number of times compounded per year Periodically interest is calculated and added to...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.) $22,000 after 8 years at 3% if the interest is compounded in the following ways. _________annually __________quarterly Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.) 25% compounded monthly. [Note: This rate is a typical credit card interest rate, often stated as 2.1% per month.] ________% Since 2007, a particular fund returned 13.9% compounded monthly....
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your...
Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value of the Annuity $3,000 every year 20 4 annually $ Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value...
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create...
Solve the following problems using either Tables
11-1 or 11-2 from your text. When necessary, create new table
factors. (Round new table factors to five decimal places, round
dollars to the nearest cent and percents to the
nearest hundredth of a percent)
Refer to Narrative 11-1. George invests $12,500, at
12% interest, semiannually for 12 years. Calculate the compound
amount for his investment.
Table 11-1: Compound Interest Table (Future Value of $1 at Compound Interest) (1 of 2) CENGAGE Table...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.) $26,000 after 6 years at 5% if the interest is compounded in the following ways. (a) annually $ (b) quarterly $
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.) $27,000 after 6 years at 3% if the interest is compounded in the following ways. (a) annually $ (b) quarterly tी
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create...
Solve the following problems using either Tables
11-1 or 11-2 from your text. When necessary, create new table
factors. (Round new table factors to five decimal places, round
dollars to the nearest cent and percents to the nearest hundredth
of a percent)
Refer to Narrative 11-1. Simon invests $19,500, at 9%
interest, compounded annually for 11 years. Calculate the compound
amount for his investment.
Group of answer choices
$41,578.53
$59,622.88
$40,793.88
$50,318.39
9:19 2.ma 31% Table 11-1: Compound Interest Table...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
A. Using the following partial table of present value of $1 at compound Interest, the present...
A. Using the following partial table of present value of $1 at compound Interest, the present value of $79,077 to be received three years hence with earnings at the rate of 6% a year is (round to two decimal points). Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 $66,424.68 $50,292.97 $54,009.59 $62,628.98 B.Use these present value table to answer the question that follow Below is a table for the present...
Name Chapter 12 Compound Interest and Present Value Part I Vocabulary Matchup A. Twice a year 1. Compound 2. Effective rate (APY B. Stated rate 3. Nominal rate C. D. E. F. Four times per year Amount calculated on adjusted principal 12 times per year Years times number of times compounded in one year True rate of interest Know future amount looking for present Rate divided by number of times compounded per year Periodically interest is calculated and added to...
Solve the following problems using either Tables
11-1 or 11-2 from your text. When necessary, create new table
factors. (Round new table factors to five decimal places, round
dollars to the nearest cent and percents to the
nearest hundredth of a percent)
Refer to Narrative 11-1. George invests $12,500, at
12% interest, semiannually for 12 years. Calculate the compound
amount for his investment.
Table 11-1: Compound Interest Table (Future Value of $1 at Compound Interest) (1 of 2) CENGAGE Table...
Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.) $27,000 after 6 years at 3% if the interest is compounded in the following ways. (a) annually $ (b) quarterly tी
Solve the following problems using either Tables
11-1 or 11-2 from your text. When necessary, create new table
factors. (Round new table factors to five decimal places, round
dollars to the nearest cent and percents to the nearest hundredth
of a percent)
Refer to Narrative 11-1. Simon invests $19,500, at 9%
interest, compounded annually for 11 years. Calculate the compound
amount for his investment.
Group of answer choices
$41,578.53
$59,622.88
$40,793.88
$50,318.39
9:19 2.ma 31% Table 11-1: Compound Interest Table...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
A. Using the following partial table of present value of $1 at compound Interest, the present value of $79,077 to be received three years hence with earnings at the rate of 6% a year is (round to two decimal points). Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 $66,424.68 $50,292.97 $54,009.59 $62,628.98 B.Use these present value table to answer the question that follow Below is a table for the present...
Most questions answered within 3 hours.
-
A 5.20 mW helium neon laser emits a visible laser beam with a
wavelength of 633...
asked 1 minute from now -
In preparing its cash flow statement for the year ended December
31, 2018, Green Co. gathered...
asked 20 seconds from now -
Donna is 18 years old and full time accounting student.She is
saving for an overseas holiday...
asked 5 seconds ago -
Service-oriented architectures (SOA) provide
object-oriented architectures for web platforms that represent a
collection of services. SOA...
asked 37 seconds ago -
Le Terroir Winery is considering an expansion project to produce
fine wines. The trial expansion will...
asked 9 minutes ago -
The Bahraini public budget experiences deficit in the last
seven years, what are procedures are taken...
asked 16 minutes ago -
You invested $30,000 in a mutual fund at the beginning of the
year when the NAV...
asked 20 minutes ago -
Would you expect the price elasticity of supply for guitars to
be more inelastic in the...
asked 22 minutes ago -
A snowmobile is originally at the point with position vector
30.1 m at 95.0° counterclockwise from...
asked 22 minutes ago -
MAN3240 Organizational Behavior
In one to two paragraphs
6.) How can understanding emotions make me more...
asked 30 minutes ago -
Identify one individual who, in your opinion, is an excellent
leader. List the qualities that this...
asked 27 minutes ago -
For the data set shown below, complete parts (a) through (d)
below. x 3 4 5...
asked 33 minutes ago