1.Solve the following word problem by using Table 11-1. The First National Bank is offering a 5-year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 5-year CD at 3% interest compounded annually. Round percentage answers to two decimal places. Round dollars to the nearest cent. Do not round intermediate calculations.

a. If you were interested in investing $8,000 in one of these CDs, calculate the compound amount of each offer.

First National:$ _________

Second National: $________

b. What is the annual percentage yield of each CD? Do not enter the percent symbol in your answer.

First National: ___________%

Second National: _________%

c. If Third National Bank has a 5-year CD at 6.5% interest compounded monthly.

$ ______________

2. As a savings plan for college, when their son Bob was born, the Wilburs deposited $17,000 in an account paying 9% compounded annually. How much will the account be worth when Bob is 19 years old? Round your answer to the nearest cent.

TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest) Periods Periods 1.01000 1.01500 1.01003 .02010 .03023 1.01508 .03030 1.04568 1.02015 .04060 .06136 1.02000 .03000 1.04000 .05000 1.06000 1.07000 1.08000 .04040 1.06090 1.08160 1.10250 12360 1.14490 16640 121 1.09273 .12486 1.15763 1.19102 1.22504 125971 1.26248 1.31080 1.36049 1.10408 927 1.21665 27628 1.33823 .40255 146933 1.06 1.08243 .12551 116986 1.21551 1.07728 103038 .06152 .09344 03553 07214 1.10984 1.12616 1.19405 126532 .34010 141852 50073 158687 1.14869 .22987 1.31593 1.40710 150363 1.60578 1.71382 1.04071 1.08286 .12649 17166 1.26677 136857 1.47746 159385 1.71819 185093 1.04591 1.051141.10462 .1605 1.09369 .14339 1.19509 1.30477 1.42331 1.55133 1.68948 1.21899 .34392 148024 .62889 79085 1.96715 2.15892 1.05640 567 .17795 1.24337 1.38423 53945 .71034 189830 2.10485 2.33164 1.06168 .12683 .19562 .26824 1.42576 1.60103 .79586 2.01220 2.25219 2.51817 1.46853 66507 1.88565 2.13293 2.40985 2.71962 1.06699 13809 1.21355 1.14947 1.07768 .16097 1.25023 1.29361 1.31948 .51259 1.73168 1.97993 2.26090 2.57853 2.93719 1.34587 .55797 1.80094 2.07893 2.39656 2.75903 3.17217 1.23176 08307 1.17258 26899 1.08849 1.18430 1.28802 .37279 6047 187298 2.18287 2.54035 2.95216 3.42594 1.40024 65285 194790 2.29202 2.692773.15882 3.70002 17 1.09393 .19615 1.30734 42825 .70243 2.02582 2.40662 2.85434 3.37993 3.99602 109940 .20811 7535 2.10685 2.52695 3.02560 3.61653 4.31570 1,45681 1.48595 .80611 2.19112 2.65330 3.20714 3.86968 4.66096 1.10490 1.22019 .34686 21 1.11042 123239 1.36706 51567 .86029 2.27877 2.78596 3.39956 4.14056 5.03383 1.12155 25716 1.40838 57690 1.97359 2.46472 3.07152 3.81975 4.74053 5.87146 1.13280 28243 1.45095 1.64061 2.09378 2.66584 3.38635 4.29187 5.42743 6.84848 597 1.24472 1.38756 1.54598 91610 2.36992 2.92526 3.60354 4.43040 5.43654 1.12716 26973 142950 1.60844 2.03279 2.56330 3.22510 4.04893 5.07237 6.34118 25 18% Periods 1.09000 .10000 1.11000 1.18810 121000 1.23210 1.25440 1.27690 1.29960 1.32250 134560 136890 1.39240 1.29503 .33100 1.36763 1.41158 1.46410 .51807 1.53862 .61051 1.68506 1.12000 .13000 1.14000 5000 1.16000 17000 1.18000 1.40493 .44290 1.48154 52088 156090 1.60161 1.64303 .57352 .63047 68896 1.74901 1.76234 .84244 1.9254 2.0136 2.10034 2.19245 2.28776 1.81064 1.87389 1.93878 1.67710 .77156 1.87041 182804 1.94872 2.07616 2.21068 2.3526 2.50227 2.66002 2.82622 3.00124 3.18547 .99256 2.14359 2.30454 2.17189 2.35795 2.55804 2.77308 3.00404 3.25195 3.51788 3.80296 4.10840 4.43545 2.36736 2.59374 2.83942 1.97382 2.08195 2.19497 2.31306 2.43640 2.56516 2.69955 2.47596 2.65844 2.85259 3.05902 3.2784 3.51145 3.75886 3.10585 3.39457 3.70722 4.04556 4.41144 4.80683 5.23384 3.47855 3.83586 4.22623 4.65239 5.11726 5.62399 6.17593 2.58043 2.85312 3.15176 2.81266 3.13843 3.49845 3.89598 4.33452 4.81790 5.35025 5.93603 6.58007 7.28759 3.06580 3.45227 3.88328 3.34173 3.79750 4.31044 3.64248 4.17725 4.78459 12 4.36349 4.89801 5.4924 6.15279 6.88579 7.69868 59936 4.88711 5.53475 6.26135 7.07571 7.98752 9.00745 10.14724 5.47357 6.25427 7.13794 8.13706 9.26552 10.53872 97375 15 15 3.97031 4.59497 5.31089 4.32763 5.05447 5.89509 6.86604 7.98608 9.27646 10.76126 12.46768 14.42646 16.67225 4.71712 5.55992 6.54355 5.14166 6.11591 7.26334 5.60441 6.72750 8.06231 6.13039 7.06733 8.13725 9.35762 10.74800 12.33030 14.12902 16 7.68997 9.02427 10.57517 12.37545 14.4625 16.87895 19.67325 8.61276 10.19742 12.05569 14.23177 16.77652 19.74838 23.21444 9.64629 52309 13.74349 16.36654 19.46076 23.10560 27.39303 21 21 6.10881 7.40025 8.94917 10.80385 13.02109 15.66758 18.82152 22.57448 27.03355 32.32378 6.65860 8.14027 9.933572.1003 14.71383 17.86104 21.64475 26.18640 31.62925 38.14206 7.257878.95430 11.02627 13.55235 6.62663 20.36158 24.89146 30.37622 37.00623 45.00763 7.91108 9.84973 12.23916 5.17863 18.78809 23.21221 28.62518 35.23642 43.29729 53.10901 8.62308 10.8347 13.58546 17.00006 21.23054 26.46192 32.91895 40.87424 50.65783 62.66863 The values in Table l 1-1 were generated by the formula FV= (I + i)" rounded to five decimal places, where i is the interest rate per period and n is the total number of periods