Narrative 111 five decimal places, rowid dollars to the nearest cent and percents to the nearest bundte oth of a perceit) order to reah flis goal. a. 53.449 .16 b. 53,534.18 c. 54.448 .81 d. $2,120.00 Exhibit 11-1: The Time Value of Money THE VALUE OF COMPOUND INTEREST Simple Interest The growth of an investment may vary greatly depending on whether simple or compound interest is involved. For example, the chart below shows the growth of $1,000 invested in an account paying 10% annual simple interest versus the same amount invested in an account Compound Interest paying 10% annual compound interest. As this chart shows, compound interest yield more than four times the value generated by simple interest over 30 years. Narrative 111 Solve the folloring problents using eifler Tables 11-1 or 112 from your tert. When necessary, create new table facrors (Rownd werw tabie factors to tive decinal places, retnd dollars to the nearest cent and percents to the nearest hundre ath of a percent) Suppoie you widh to have $16,500 in 2 years. Uie the present value formaln to find how much you should invect now at 8% incerest, coapounded ieniannially in order to have 516,500,2 years from sow, Then calculate the anount of ingerest. a.514.104.27 b. $14,146.11 c 52,395,73 d.52.353.89 Bent Ribn widhes to pay off a debt of $40,000 in 7 yeas. What amortization poyment would they nced to nake ench six montlis, at 6% interent coenpounded vemiannually? (Uie Table 12.2 from your text) a 53.541 .05 b. 52.955 .32 c. 53,910.63 d. 52.727 .79