Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to calculate the compound interest (in $) on your investment.
Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to calculate the compound interest (in $) on your investment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
100%
Transcribed Image Text:Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5
years. use Table 11-1 to calculate the compound interest (in $) on your
investment.
Transcribed Image Text:TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest)
Periods
1%
1%
3%
4%
6%
7%
Periods
1%
2%
5%
8%
1
1.00500
1.01000
1.01500
1.02000
1.03000
1.04000
1.05000
1.06000
1.07000
1.08000
1
1.01003
1.02010
1.03023
1.04040
1.06090
1.08160
1.10250
1.12360
1.14490
1.16640
2
3
1.01508
1.03030
1.04568
1.06121
1.09273
1.12486
1.15763
1.19102
1.22504
1.25971
3
4
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
6.
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
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
2
1.18810
1.21000
1.23210
1.25440
1.27690
1.29960
1.32250
1.34560
1.36890
1.39240
1.29503
1.33100
1.36763
1.40493
1.44290
1.48154
1.52088
1.56090
1.60161
1.64303
3
4
1.41158
1.46410
1.51807
1.57352
1.63047
1.68896
1.74901
1.81064
1.87389
1.93878
4
5
1.53862
1.61051
1.68506
1.76234
1.84244
1.92541
2.01136
2.10034
2.19245
2.28776
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
9.
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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