Question
Please help me to answer these questions Thank you this is... Please help me to answer these questions Thank you this is table Table 11-1:
Please help me to answer these questions Thank you this is...
Please help me to answer these questions
Thank you
this is table Table 11-1: https://www.webassign.net/brecmbc9/11-table-1.pdf
1. This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the
skipped part, and you will not be able to come back to the skipped part.
Tutorial Exercise
Brian invests $12,500, at 5% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for his investment.
Step 1
The compound amount, also called the future value, is the total amount of the principal and accumulated interest at the end of an investment. Compound interest is interest that is applied a number of times during the term of an investment. With compound interest, the interest earned for each period is reinvested to the previous principal before the next calculation. The previous principal plus interest then becomes the new principal that will earn interest for the next period.
Recall the formula to calculate simple interest I below where the principal P is the original amount of the investment, the interest rate R is written as a decimal, and the time T is in years.
I = PRT
Compounding semiannually means that interest will be calculated twice per year. Therefore, the amount of time in years that will be used to calculate interest for each compounding period will be
T = years.
The total number of compounding periods will be the number of years multiplied by the number of periods per year. This investment earns interest for 2 years.
| total number of compounding periods | = | number of years of investment number of compounding periods per year |
| = | 2 | |
| = |
2. This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to come back to the skipped part.
Tutorial Exercise
You wish to have $22,000 in 11 years. Use Table 11-2 to create a new table factor, and then find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $22,000, 11 years from now. (Round your answer to the nearest cent.)
Step 1
The compound amount, or future value, needed in 11 years is $22,000. The investment will earn 6% interest compounded quarterly. The amount of money needed to reach this goal, the present value, can be found using the following formula where the table factor is from a present value table.
present value = table factor compound amount
To use the present value table, the interest rate per period and the number of compounding periods need to be determined. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows.
interest rate per period =
| nominal rate |
| periods per year |
The rate was given to be 6%. Interest is compounded quarterly, or 4 times per year. Find the interest rate per period.
| interest rate per period | = |
| ||
| = |
| |||
| = | % |
The total number of compounding periods will be the number of years multiplied by the number of compounding periods per year. The investment accrues interest compounded quarterly for 11 years. Find the total number of compounding periods.
| total number of compounding periods | = | number of years number of compounding periods per year |
| = | 11 | |
| = |
3.
This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to come back to the skipped part.
Tutorial Exercise
Use Table 11-1 https://www.webassign.net/brecmbc9/11-table-1.pdf to calculate the compound amount (in $) on an investment of $6,500 at 4% interest, compounded semiannually, for 15 years. (Round your answer to the nearest cent.)
Step 1
One way to find the value after all the compounding periods is to use a compound interest table. To use the compound interest table, we must know the interest rate per period and the number of compounding periods. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows.
interest rate per period =
| nominal rate |
| periods per year |
The rate was given to be 4%. Interest is compounded semiannually, or 2 times per year. Find the interest rate per period.
| interest rate per period | = |
| ||
| = |
| |||
| = | % |
The total number of compounding periods will be the number of years multiplied by the number of compounding periods per year. The investment accrues interest compounded semiannually so there are 2 compounding periods per year. The investment is for 15 years. Find the total number of compounding periods.
| total number of compounding periods | = | number of years number of compounding periods per year |
| = | 15 | |
| = |
4. Suppose that you invest $2,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to calculate the compound interest (in $) on your investment.
Step 1
Before finding the compound interest, we must first find the final value of the investment after all the compounding periods. One way to find the value after all the compounding periods is to use a compound interest table. To use the compound interest table, we must know the interest rate per period and the number of compounding periods. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows.
interest rate per period =
| nominal rate |
| periods per year |
The rate was given to be 6%. Interest is compounded quarterly, or 4 times per year. Find the interest rate per period.
| interest rate per period | = |
| ||
| = |
| |||
| = | % |
The total number of compounding periods will be the number of years multiplied by the number of compounding periods per year. The investment accrues interest compounded quarterly, so there are 4 compounding periods per year. The investment is for 5 years. Find the total number of compounding periods.
| total number of compounding periods | = | number of years number of compounding periods per year |
| = | 5 | |
| = |
5.
This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to come back to the skipped part.
Tutorial Exercise
Maria invests $3,700, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: "Annual percentage yield" is also known as "effective interest rate." (Round your answer to two decimal places.)
Step 1
The annual percentage yield, APY, reflects the real rate of return on an investment. It is calculated by dividing the total compound interest earned in 1 year by the principal. Recall that the compound interest is the total amount of interest earned on an investment. Before finding the compound interest, we must first find the final value of the investment after all the compounding periods.
One way to find the value after all the compounding periods is to use a compound interest table. To use the compound interest table, we must know the interest rate per period and the number of compounding periods. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows.
interest rate per period =
| nominal rate |
| periods per year |
The rate was given to be 6%. Interest is compounded quarterly, or 4 times per year. Find the interest rate per period.
| interest rate per period | = |
| ||
| = |
| |||
| = | % |
The total number of compounding periods will be the number of years multiplied by the number of compounding periods per year. The investment accrues interest compounded quarterly, so there are 4 compounding periods per year. The investment is for 1 year. Find the total number of compounding periods.
| total number of compounding periods | = | number of years number of compounding periods per year |
| = | 1 |
6.
This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to come back to the skipped part.
Tutorial Exercise
Sonia wants to have $12,000 in 9 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 1
The compound amount, or future value, Sonia needs in 9 years is $12,000. Her investment will earn 6% interest compounded semiannually. The amount of money needed to reach this goal, the present value, can be found using the following formula where the table factor is from a present value table.
present value = table factor compound amount
To use the present value table, the interest rate per period and the number of compounding periods need to be determined. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows.
interest rate per period =
| nominal rate |
| periods per year |
The rate was given to be 6%. Interest is compounded semiannually, or 2 times per year. Find the interest rate per period.
| interest rate per period | = |
| ||
| = |
| |||
| = | % |
The total number of compounding periods will be the number of years multiplied by the number of compounding periods per year. The investment accrues interest compounded semiannually for 9 years. Find the total number of compounding periods.
| total number of compounding periods | = | number of years number of compounding periods per year |
| = | 9 | |
| = |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
