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 $6,000 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.

$

Periods 1% 4% 6% 7% ! 2 3 4 $ 1 1.00500 1.01003 1.01508 1.02015 1.02525 1.01000 1.02010 1.03030 1.04060 1.05101 1.01500 1.03023 1.04568 1.06136 1.07728 2% 1.02000 1.04040 1.06121 1.08243 1.10-08 36 1.030 1.05090 1.09273 1.12SSI 1.15927 1.04000 1.08160 1.12486 1.16986 1.21665 5% 1.05000 1.10250 1.15763 1.21551 1.27628 1.000) 1.12360 1.19102 1.26248 1.33823 1.07000 1.14490 1.22504 1.31080 1.40255 8% 1.08000 1.16640 1.25971 1.36049 1.46933 Periods 1 2 3 4 5 6 7 8 9 10 1.03038 1.03553 1.04071 1.04591 1.05114 1.12616 1.14869 1.17166 1.19509 1.21899 1.19405 1.22987 1.26677 1.30477 1.34392 1.26532 1.31593 1.36857 1.42331 1.48024 1.34010 1.40710 1.47746 1.55133 1.62889 1.41852 1.50363 1.59385 1.68948 1.79085 1.50073 1.60578 1.71819 1.83846 1.96715 1.58687 1.71382 1.85093 1.99900 2.15892 6 7 8 9 10 12 1.05640 1.06168 1.06.199 1.07232 1.07768 1.06152 1.07214 1.08286 1.09369 1.10462 1.11567 1.12683 1.13809 1.14947 1.16097 1.17258 1.18430 1.19615 1.20811 1.22019 1.09344 1.10984 1.12649 1.14339 1.16054 1.17795 1.19562 1.21355 1.23176 1.25023 1.26899 1.28802 1.30734 1.32695 1.34686 1.24337 1.26824 1.29361 1.31948 1.34587 1.38423 1.42576 1.46853 1.51259 1.55797 1.53945 1.60103 1.66507 1.73168 1.80094 1.71034 1.79586 1.88565 1.97993 2.07893 1.89830 2.01220 2.13293 2.26090 2.39656 2.10485 2.25219 2.40985 2.57853 2.75903 2.33164 2.31817 2.71962 2.93719 3.17217 EUR 35a TE 11 12 13 14 15 18 19 1.08 307 1.08849 1.09393 1.09940 1.10490 1.37279 1.40024 1.42825 1.45681 1.48595 1.60471 1.65285 1.70243 1.75351 1.80611 1.87298 1.94790 2.02582 2.10685 2.19112 2.18287 2.29202 2.40662 2.52695 2.65330 2.54035 2.69277 2.85434 3.02560 3.20714 2.95216 3.15882 3.37993 3.61633 3.86%68 3.42594 3.70002 3.99602 4.31570 4.66096 16 17 18 19 20 1.11042 1.11597 1.12155 1.12716 1.13280 1.23239 1.24472 1.25716 1.26973 1.28243 1.36706 1.38756 1.40838 1.42950 1.45095 1.51567 1.54598 1.57620 1.60844 1.64061 1.86029 1.91610 1.97359 2.03279 2.09378 2.27877 2.36992 2.46472 2.56330 2.66584 2.78596 2.92526 3.07152 3.22510 3.38635 3.39956 3.60354 3.81975 4.04893 4.29187 4.14056 4,43040 4.74053 5.07237 5.42743 5.03383 5.43654 5.87146 6.34118 6.84848 21 22 23 24 25 24 25 Periods Periods 1 2 3 4 $ 9 1.09000 1.18810 1.29503 1.41158 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 11% 1.1 1000 1.23210 1.36763 1.51807 1.68506 12% 1.12000 1.25440 1.40493 1.57352 1.76234 13% 1.13000 1.27690 1.44290 1.63047 1.84244 14% 1.14000 1.29960 1.48154 1.688% 1.92541 15% 1.15000 1.32250 1.52088 1.74901 2.01136 16% 1.1600X 1.34560 1.56090 1.81064 2.10034 17% 1.17000 1.36890 1.60161 1.87389 2.19245 18% 1.18000 1.39240 1.64303 1.93878 2.28776 2 3 4 S 6 7 8 1.67710 1.82804 1.99256 2.17189 2.36736 1.77156 1.94872 2.14359 2.35795 2.59374 1.87041 2.07616 2.30454 2.55804 2.83942 1.97382 2.21068 2.47596 2.77308 3.10585 2.08195 2.35261 2.65844 3.00404 3.39457 2.19.497 2.50227 2.85259 3.25195 3.70722 2.31306 2.66002 3.05902 3.51788 4.04556 2.43640 2.82622 3.27841 3.80296 4.41144 2.56516 3.00124 3.51145 4.108.40 4.80683 2.69955 3.18547 3.75886 4.43545 5.23384 6 7 8 9 10 9 10 11 12 13 14 IS 2.58043 2.81266 3.06580 3.34173 3.64248 2.85312 3.13843 3.45227 3.79750 4.17725 3.15176 3.49845 3.88328 4.31044 4.78459 3.47855 3.89598 4.36349 4.88711 5.47357 3.83586 4.33452 4.89801 5.53475 6.25427 4.22623 4.81790 5.49241 6.26135 7.13794 4.65239 5.35025 6.15279 7.07571 8.13706 5.11726 5.93603 6.88579 7.98752 9.26552 5.62399 6.58007 7.69868 9.00745 10.53872 6.17593 7.28759 8.59936 10.14724 11.97375 11 12 13 14 1S 16 17 18 19 20 3.97031 4.32763 4.71712 5.14166 5.60441 4.59497 5.05447 5.55992 6.11591 6.72750 5.31089 5.89509 6.54355 7.26334 8.06231 6.13039 6.86604 7.68997 8.61276 9.64629 7.06733 7.98608 9.02427 10.19742 11.52309 8.13725 9.27616 10.57517 12.05569 13.74349 9.35762 10.76126 12.375-45 14.23177 16.36654 10.74800 12.46768 14.46251 16.77652 19.46076 12.33030 14.42616 16.87895 19.74838 23.10560 14.12202 16.67225 19.67325 23.21444 27.39303 16 17 18 19 20 21 22 23 24 25 6.10881 665860 7.25787 7.91 108 862308 7.40025 8.14027 8 95430 9.84973 10.83471 8.9.1917 9.93357 11.02627 12.23916 13.58846 10.80385 12.10031 13.55235 15.17863 17.00006 13.02109 14.71383 16.62663 18.78809 21.22054 15.66758 17.86104 20.36158 23.21221 26.46192 18.82152 21.61475 24.89146 28.62518 32.91895 22.57448 26.18610 30.37622 35.23642 40.87424 27.03355 31.62925 37.00623 43.29729 50.65783 32.32378 38.14206 45.00763 53.10901 02.6683 21 22 23 24 25