Maria invests $4,900, 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.) 0%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Maria invests $4,900, 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.)
%
Transcribed Image Text:Maria invests $4,900, 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.) %
TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest)
1%
Periods
1%
2%
3%
4%
5%
6%
7%
8%
Periods
1
1.00500
1.01000
1.01500
1.02000
1.03000
1.04000
1.05000
1.06000
1.07000
1.08000
1
2
1.01003
1.02010
1.03023
1.04040
1.06090
1.08160
1.10250
1.12360
1.14490
1.16640
2
1.01508
1.03030
1.04568
1.06121
1.09273
1.12486
1.15763
1.19102
1.22504
1.25971
3
1.02015
1.04060
1.06136
1.08243
1.12551
1.16986
1.21551
1.26248
1.31080
1.36049
4
1.02525
1.05101
1.07728
1.10408
1.15927
1.21665
1.27628
1.33823
1.40255
1.46933
6.
1.03038
1.06152
1.09344
1.12616
1.19405
1.26532
1.34010
1.41852
1.50073
1.58687
7
1.03553
1.07214
1.10984
1.14869
1.22987
1.31593
1.40710
1.50363
1.60578
1.71382
7
8
1.04071
1.08286
1.12649
1.17166
1.26677
1.36857
1.47746
1.59385
1.71819
1.85093
8.
9
1.04591
1.09369
1.14339
1.19509
1.30477
1.42331
1.55133
1.68948
1.83846
1.99900
9.
10
1.05114
1.10462
1.16054
1.21899
1.34392
1.48024
1.62889
1.79085
1.96715
2.15892
10
11
1.05640
1.11567
1.17795
1.24337
1.38423
1.53945
1.71034
1.89830
2.10485
2.33164
11
12
1.06168
1.12683
1.19562
1.26824
1.42576
1.60103
1.79586
2.01220
2.25219
2.51817
12
13
1.06699
1.13809
1.21355
1.29361
1.46853
1.66507
1.88565
2.13293
2.40985
2.71962
13
14
1.07232
1.14947
1.23176
1.31948
1.51259
1.73168
1.97993
2.26090
2.57853
2.93719
14
15
1.07768
1.16097
1.25023
1.34587
1.55797
1.80094
2.07893
2.39656
2.75903
3.17217
15
16
1.08307
1.17258
1.26899
1.37279
1.60471
1.87298
2.18287
2.54035
2.95216
3.42594
16
17
1.08849
1.18430
1.28802
1.40024
1.65285
1.94790
2.29202
2.69277
3.15882
3.70002
17
18
1.09393
1.19615
1.30734
1.42825
1.70243
2.02582
2.40662
2.85434
3.37993
3.99602
18
19
1.09940
1.20811
1.32695
1.45681
1.75351
2.10685
2.52695
3.02560
3.61653
4.31570
19
20
1.10490
1.22019
1.34686
1.48595
1.80611
2.19112
2.65330
3.20714
3.86968
4.66096
20
21
1.11042
1.23239
1.36706
1.51567
1.86029
2.27877
2.78596
3.39956
4.14056
5.03383
21
22
1.11597
1.24472
1.38756
1.54598
1.91610
2.36992
2.92526
3.60354
4.43040
5.43654
22
23
1.12155
1.25716
1.40838
1.57690
1.97359
2.46472
3.07152
3.81975
4.74053
5.87146
23
24
1.12716
1.26973
1.42950
1.60844
2.03279
2.56330
3.22510
4.04893
5.07237
6.34118
24
25
1.13280
1.28243
1.45095
1.64061
2.09378
2.66584
3.38635
4.29187
5.42743
6.84848
25
Periods
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
Periods
1
1.09000
1.10000
1.11000
1.12000
1.13000
1.14000
1.15000
1.16000
1.17000
1.18000
1
1.18810
1.21000
1.23210
1.25440
1.27690
1.29960
1.32250
1.34560
1.36890
1.39240
2
1.29503
1.33100
1.36763
1.40493
1.44290
1.48154
1.52088
1.56090
1.60161
1.64303
3
1.41158
1.46410
1.51807
1.57352
1.63047
1.68896
1.74901
1.81064
1.87389
1.93878
4
1.53862
1.61051
1.68506
1.76234
1.84244
1.92541
2.01136
2.10034
2.19245
2.28776
6.
1.67710
1.77156
1.87041
1.97382
2.08195
2.19497
2.31306
2.43640
2.56516
2.69955
6.
7
1.82804
1.94872
2.07616
2.21068
2.35261
2.50227
2.66002
2.82622
3.00124
3.18547
7
8
1.99256
2.14359
2.30454
2.47596
2.65844
2.85259
3.05902
3.27841
3.51145
3.75886
8
9.
2.17189
2.35795
2.55804
2.77308
3.00404
3.25195
3.51788
3.80296
4.10840
4.43545
10
2.36736
2.59374
2.83942
3.10585
3.39457
3.70722
4.04556
4.41144
4.80683
5.23384
10
11
2.58043
2.85312
3.15176
3.47855
3.83586
4.22623
4.65239
5.11726
5.62399
6.17593
11
12
2.81266
3.13843
3.49845
3.89598
4.33452
4.81790
5.35025
5.93603
6.58007
7.28759
12
13
3.06580
3.45227
3.88328
4.36349
4.89801
5.49241
6.15279
6.88579
7.69868
8.59936
13
14
3.34173
3.79750
4.31044
4.88711
5.53475
6.26135
7.07571
7.98752
9.00745
10.14724
14
15
3.64248
4.17725
4.78459
5.47357
6.25427
7.13794
8.13706
9.26552
10.53872
11.97375
15
16
3.97031
4.59497
5.31089
6.13039
7.06733
8.13725
9.35762
10.74800
12.33030
14.12902
16
17
4.32763
5.05447
5.89509
6.86604
7.98608
9.27646
10.76126
12.46768
14.42646
16.67225
17
18
4.71712
5.55992
6.54355
7.68997
9.02427
10.57517
12.37545
14.46251
16.87895
19.67325
18
19
5.14166
6.11591
7.26334
8.61276
10.19742
12.05569
14.23177
16.77652
19.74838
23.21444
19
20
5.60441
6.72750
8.06231
9.64629
11.52309
13.74349
16.36654
19.46076
23.10560
27.39303
20
21
6.10881
7.40025
8.94917
10.80385
13.02109
15.66758
18.82152
22.57448
27.03355
32.32378
21
22
6.65860
8.14027
9.93357
12.10031
14.71383
17.86104
21.64475
26.18640
31.62925
38.14206
22
23
7.25787
8.95430
11.02627
13.55235
16.62663
20.36158
24.89146
30.37622
37.00623
45.00763
23
24
7.91108
9.84973
12.23916
15.17863
18.78809
23.21221
28.62518
35.23642
43.29729
53.10901
24
25
8.62308
10.83471
13.58546
17.00006
21.23054
26.46192
32.91895
40.87424
50.65783
62.66863
25
The values in Table 11-1 were generated by the formula FV = (1 + i)" rounded to five decimal places, where i is the interest
rate per period and n is the total number of periods.
Transcribed Image Text:TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest) 1% Periods 1% 2% 3% 4% 5% 6% 7% 8% Periods 1 1.00500 1.01000 1.01500 1.02000 1.03000 1.04000 1.05000 1.06000 1.07000 1.08000 1 2 1.01003 1.02010 1.03023 1.04040 1.06090 1.08160 1.10250 1.12360 1.14490 1.16640 2 1.01508 1.03030 1.04568 1.06121 1.09273 1.12486 1.15763 1.19102 1.22504 1.25971 3 1.02015 1.04060 1.06136 1.08243 1.12551 1.16986 1.21551 1.26248 1.31080 1.36049 4 1.02525 1.05101 1.07728 1.10408 1.15927 1.21665 1.27628 1.33823 1.40255 1.46933 6. 1.03038 1.06152 1.09344 1.12616 1.19405 1.26532 1.34010 1.41852 1.50073 1.58687 7 1.03553 1.07214 1.10984 1.14869 1.22987 1.31593 1.40710 1.50363 1.60578 1.71382 7 8 1.04071 1.08286 1.12649 1.17166 1.26677 1.36857 1.47746 1.59385 1.71819 1.85093 8. 9 1.04591 1.09369 1.14339 1.19509 1.30477 1.42331 1.55133 1.68948 1.83846 1.99900 9. 10 1.05114 1.10462 1.16054 1.21899 1.34392 1.48024 1.62889 1.79085 1.96715 2.15892 10 11 1.05640 1.11567 1.17795 1.24337 1.38423 1.53945 1.71034 1.89830 2.10485 2.33164 11 12 1.06168 1.12683 1.19562 1.26824 1.42576 1.60103 1.79586 2.01220 2.25219 2.51817 12 13 1.06699 1.13809 1.21355 1.29361 1.46853 1.66507 1.88565 2.13293 2.40985 2.71962 13 14 1.07232 1.14947 1.23176 1.31948 1.51259 1.73168 1.97993 2.26090 2.57853 2.93719 14 15 1.07768 1.16097 1.25023 1.34587 1.55797 1.80094 2.07893 2.39656 2.75903 3.17217 15 16 1.08307 1.17258 1.26899 1.37279 1.60471 1.87298 2.18287 2.54035 2.95216 3.42594 16 17 1.08849 1.18430 1.28802 1.40024 1.65285 1.94790 2.29202 2.69277 3.15882 3.70002 17 18 1.09393 1.19615 1.30734 1.42825 1.70243 2.02582 2.40662 2.85434 3.37993 3.99602 18 19 1.09940 1.20811 1.32695 1.45681 1.75351 2.10685 2.52695 3.02560 3.61653 4.31570 19 20 1.10490 1.22019 1.34686 1.48595 1.80611 2.19112 2.65330 3.20714 3.86968 4.66096 20 21 1.11042 1.23239 1.36706 1.51567 1.86029 2.27877 2.78596 3.39956 4.14056 5.03383 21 22 1.11597 1.24472 1.38756 1.54598 1.91610 2.36992 2.92526 3.60354 4.43040 5.43654 22 23 1.12155 1.25716 1.40838 1.57690 1.97359 2.46472 3.07152 3.81975 4.74053 5.87146 23 24 1.12716 1.26973 1.42950 1.60844 2.03279 2.56330 3.22510 4.04893 5.07237 6.34118 24 25 1.13280 1.28243 1.45095 1.64061 2.09378 2.66584 3.38635 4.29187 5.42743 6.84848 25 Periods 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% Periods 1 1.09000 1.10000 1.11000 1.12000 1.13000 1.14000 1.15000 1.16000 1.17000 1.18000 1 1.18810 1.21000 1.23210 1.25440 1.27690 1.29960 1.32250 1.34560 1.36890 1.39240 2 1.29503 1.33100 1.36763 1.40493 1.44290 1.48154 1.52088 1.56090 1.60161 1.64303 3 1.41158 1.46410 1.51807 1.57352 1.63047 1.68896 1.74901 1.81064 1.87389 1.93878 4 1.53862 1.61051 1.68506 1.76234 1.84244 1.92541 2.01136 2.10034 2.19245 2.28776 6. 1.67710 1.77156 1.87041 1.97382 2.08195 2.19497 2.31306 2.43640 2.56516 2.69955 6. 7 1.82804 1.94872 2.07616 2.21068 2.35261 2.50227 2.66002 2.82622 3.00124 3.18547 7 8 1.99256 2.14359 2.30454 2.47596 2.65844 2.85259 3.05902 3.27841 3.51145 3.75886 8 9. 2.17189 2.35795 2.55804 2.77308 3.00404 3.25195 3.51788 3.80296 4.10840 4.43545 10 2.36736 2.59374 2.83942 3.10585 3.39457 3.70722 4.04556 4.41144 4.80683 5.23384 10 11 2.58043 2.85312 3.15176 3.47855 3.83586 4.22623 4.65239 5.11726 5.62399 6.17593 11 12 2.81266 3.13843 3.49845 3.89598 4.33452 4.81790 5.35025 5.93603 6.58007 7.28759 12 13 3.06580 3.45227 3.88328 4.36349 4.89801 5.49241 6.15279 6.88579 7.69868 8.59936 13 14 3.34173 3.79750 4.31044 4.88711 5.53475 6.26135 7.07571 7.98752 9.00745 10.14724 14 15 3.64248 4.17725 4.78459 5.47357 6.25427 7.13794 8.13706 9.26552 10.53872 11.97375 15 16 3.97031 4.59497 5.31089 6.13039 7.06733 8.13725 9.35762 10.74800 12.33030 14.12902 16 17 4.32763 5.05447 5.89509 6.86604 7.98608 9.27646 10.76126 12.46768 14.42646 16.67225 17 18 4.71712 5.55992 6.54355 7.68997 9.02427 10.57517 12.37545 14.46251 16.87895 19.67325 18 19 5.14166 6.11591 7.26334 8.61276 10.19742 12.05569 14.23177 16.77652 19.74838 23.21444 19 20 5.60441 6.72750 8.06231 9.64629 11.52309 13.74349 16.36654 19.46076 23.10560 27.39303 20 21 6.10881 7.40025 8.94917 10.80385 13.02109 15.66758 18.82152 22.57448 27.03355 32.32378 21 22 6.65860 8.14027 9.93357 12.10031 14.71383 17.86104 21.64475 26.18640 31.62925 38.14206 22 23 7.25787 8.95430 11.02627 13.55235 16.62663 20.36158 24.89146 30.37622 37.00623 45.00763 23 24 7.91108 9.84973 12.23916 15.17863 18.78809 23.21221 28.62518 35.23642 43.29729 53.10901 24 25 8.62308 10.83471 13.58546 17.00006 21.23054 26.46192 32.91895 40.87424 50.65783 62.66863 25 The values in Table 11-1 were generated by the formula FV = (1 + i)" rounded to five decimal places, where i is the interest rate per period and n is the total number of periods.
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