Question
1.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. a. Compound Amount Term
1.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent.
a.
| Compound Amount | Term of Investment | Nominal Rate (%) | Interest Compounded | Present Value | Compound Interest |
|---|---|---|---|---|---|
| $32,000 | 6 years | 4 | semiannually | $ | $ |
b.
| Compound Amount | Term of Investment | Nominal Rate (%) | Interest Compounded | Present Value | Compound Interest |
|---|---|---|---|---|---|
| $8,000 | 12 years | 6 | semiannually | $ | $ |
c.
| Compound Amount | Term of Investment | Nominal Rate (%) | Interest Compounded | Present Value | Compound Interest |
|---|---|---|---|---|---|
| $200,000 | 10 years | 4 | annually | $ | $ |
d. Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.)
Step by Step Solution
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Step: 1
To calculate the present value principal and compound interest we can use the following formula Present Value Compound Amount 1 Nominal Rate Number of ...
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Introduction to Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
6th edition
78136601, 978-0078136603
