Calculate the present value (principal) and the compound interest (in $). Use Table 11-2 attached. Round your answers to the nearest cent.

Compound Amount $800,000

Term of Investment 10 years

Nominal rate 4%

Interest Compounded - Annually

Need to know the present value and compound interest

 

TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest) Periods % 1 0.99502 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1% 1% 2% 3% 4% 0.99010 0.98522 0.98039 0.97087 0.96154 0.99007 0.98030 0.97066 0.96117 0.94260 0.92456 0.98515 0.97059 0.95632 0.94232 0.91514 0.88900 0.98025 0.96098 0.94218 0.92385 0.88849 0.85480 0.97537 0.95147 0.92826 0.90573 0.86261 0.82193 0.97052 0.94205 0.96569 0.93272 0.96089 0.95610 0.95135 0.90529 0.91454 0.88797 0.83748 0.79031 0.74622 0.90103 0.87056 0.81309 0.75992 0.71068 0.92348 0.88771 0.85349 0.78941 0.73069 0.67684 0.91434 0.87459 0.83676 0.76642 0.70259 0.64461 0.86167 0.82035 0.74409 0.67556 0.61391 0.55839 5% 6% 7% 8% 0.95238 0.94340 0.90703 0.89000 0.93458 0.92593 0.87344 0.85734 0.86384 0.83962 0.81630 0.79383 0.82270 0.79209 0.76290 0.78353 0.74726 0.71299 0.73503 0.68058 0.94661 0.89632 0.84893 0.80426 0.72242 0.94191 0.88745 0.83639 0.78849 0.70138 0.93722 0.87866 0.82403 0.77303 0.68095 0.93256 0.86996 0.81185 0.75788 0.66112 0.57748 0.92792 0.86135 0.79985 0.74301 0.64186 0.55526 0.92330 0.85282 0.78803 0.72845 0.62317 0.53391 0.91871 0.84438 0.77639 0.71416 0.60502 0.51337 0.91414 0.83602 0.76491 0.70016 0.58739 0.49363 0.41552 0.90959 0.82774 0.75361 0.68643 0.57029 0.47464 0.39573 0.74247 0.67297 0.55368 0.45639 0.37689 0.90506 0.81954 0.90056 0.81143 0.73150 0.65978 0.89608 0.80340 0.72069 0.64684 0.89162 0.79544 0.71004 0.63416 0.88719 0.78757 0.69954 0.62172 0.88277 0.77977 0.68921 0.60953 0.70496 0.66634 0.63017 0.66506 0.62275 0.58349 0.62741 0.58201 0.54027 0.59190 0.54393 0.50025 0.50835 0.46319 0.42888 0.64958 0.58468 0.52679 0.47509 0.62460 0.55684 0.49697 0.44401 0.39711 0.60057 0.53032 0.46884 0.41496 0.36770 0.50507 0.44230 0.38782 0.34046 0.48102 0.41727 0.36245 0.31524 0.53755 0.52189 0.50669 0.40573 0.49193 0.39012 0.47761 0.37512 0.45811 0.39365 0.33873 0.29189 0.43630 0.37136 0.31657 0.27027 0.35034 0.29586 0.25025 0.33051 0.27651 0.23171 0.31180 0.25842 0.43883 0.35894 0.29416 0.24151 0.42196 0.34185 0.27751 0.32557 0.26180 0.31007 0.24698 0.29530 0.23300 0.21455 0.19866 0.18394 0.17032 0.22571 0.21095 0.19715 0.15770 0.18425 0.14602 Periods 1 2 3 4 5 6 7 8 9 10 HDRHD 20%28 G 11 12 13 14 15 16 17 18 19 21 22 23 24 25