Part A -

Part B:

Part C:

Part D:

Part E:

The First National Bank is offering a 3 year certificate of deposit (CD) at 4% interest compounded quarterly; Second National Bank is offering a 3 year CD at 5% interest compounded annually. (Round your answers to two decimal places.) (a) If you were interested in investing $9,000 in one of these CDs, calculate the compound amount (in $) of each offer. (Use Table 11-1.) First National Bank $ Second National Bank $ (b) What is the annual percentage yield of each CD? First National Bank % Second National Bank % (c) If Third National Bank has a 3 year CD at 4.5% interest compounded monthly, use the compound interest formula to calculate the compound amount (in $) of this offer. As an incentive to attract savings deposits, most financial institutions today offer daily and even continuous compounding. This means that savings, or passbook, accounts, as well as certificates of deposit (CDs), earn interest compounded each day or even more frequently, such as every hour or even every minute. (Continuous compounding, in which compounding occurs every instant, involves a different formula that is derived from the formula we've been using.) Let's take a look at daily compounding. To calculate the compound amount, A, of an investment with daily compounding, use the compound interest formula modified as follows: = i Rate per period (daily) (nominal interest rate, i, divided by 365) 365 Number of periods (days), n, = number of days of the investment. n i A = PI 1 + 365 Calculator Sequence: (1 + (1: 365 )) ynx P = A. (Round your answers to the nearest cent.) (a) On April 16, Thomas Ash deposited $2,300 in a passbook savings account at 3.5% interest compounded daily. What is the compound amount (in $) of his account on August 5? (b) Using daily compounding, calculate the compound amount (in $) of an $8,000 investment for each of the three CDs. The First National Bank is offering a 5 year CD at 4% interest. The Second National Bank is offering a 5 year CD at 3% interest. The Third National Bank has a 5 year CD at 5.5% interest. First National Bank $ Second National Bank $ Third National Bank $ The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. Compound Amount Term of Investment (years) Nominal Rate (%) Interest Compounded New Table Factor Present Value $39,000 36 7 annually $ The requirement for computer server capacity at a particular company is expected to increase at a rate of 15% per year for the next 5 years. If the server capacity is expected to be 1,700 gigabytes in 5 years, how many gigabytes of capacity are there today? Round to the nearest whole gigabyte. GB Solve by using the present value formula. Round your answers (in $) to the nearest cent. Compound Amount Term of Investment Nominal Rate (%) Interest Compounded Present Value Compound Interest $17,000 8 years 4.5 monthly A x Enter a number