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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.) 0%

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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