Question

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.

9:19 2.ma 31% Table 11-1: Compound Interest Table (Future Value of $1 at Compound Interest) (1 of 2) 11 GAGE Table 11-1: Compound Interest Table (Future Value of $1 at Compound Interest) (2 of 2) 16 17 18 117250 120 137271.60471 118 120 14000 161 2222222PP1523002 0113034 1430 170043 2.200 1200 14 1 2 1 14 1 1 1 119001 130 1515 1 2 .2777 2.7256 111011119110223 2011 12 GAGE EXHIBIT 11-3: Compounding Periods per Year

Group of answer choices

$41,578.53

$59,622.88

$40,793.88

$50,318.39

Answer 1

Calculate compound amount

Future value = Amount*(PVF@9%)

= 19500*2.58043

Future value = 50318.39

So answer is d) $50318.39