Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year's Sundance Film Festival. If the school raises $15,600 and invests it for 1 year at 3% interest compounded annually, what is the APY earned? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest whole percent. APY %
Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year's Sundance Film Festival. If the school raises $15,600 and invests it for 1 year at 3% interest compounded annually, what is the APY earned? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest whole percent. APY %
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
Related questions
Question
Transcribed Image Text:10/12/22, 7:02 PM
Period
1
2
3
4
5
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
0.5%
1.0%
0.9950 0.9901
1.5%
0.9852
2.0%
0.9804
0.9901
0.9803
0.9707
0.9612
0.9851
0.9706
0.9563
0.9423
0.9802
0.9610
0.9422
0.9238
0.9754 0.9515
0.9283
0.9057
0.9705
0.9420
0.9145
0.8880
0.9657 0.9327
0.9010
0.8706
0.9609 0.9235
0.8877
0.8535
0.9561
0.9143 0.8746
0.8368
0.9513
0.9053
0.8617
0.8203
0.9466
0.8963
0.8489
0.8043
0.9419 0.8874
0.8364
0.7885
0.9372
0.8787
0.8240
0.7730
0.9326
0.8700
0.8118
0.7579
0.9279
0.8613
0.7999
0.7430
0.9233
0.8528
0.7880
0.7284
0.9187
0.8444
0.7764
0.7142
0.9141
0.8360
0.7649
0.7002
0.9096 0.8277
0.7536
0.6864
0.9051
0.8195
0.7425
0.6730
0.9006
0.8114
0.7315
0.6598
0.8961
0.8034
0.7207
0.6468
0.8916
0.7954
0.7100
0.6342
0.8872 0.7876 0.6995
0.6217
0.8828 0.7798
0.6892
0.6095
0.8784
0.6790
0.5976
0.7720
0.8740 0.7644
0.6690
0.5859
0.8697
0.7568
0.6591
0.5744
0.8653 0.7493
0.6494
0.5631
0.8610
0.6398
0.5521
0.7419
0.8567 0.7346
0.6303
0.5412
0.8525 0.7273
0.6210
0.5306
0.8482 0.7201
0.6118
0.5202
0.6028
0.5100
0.8440 0.7130
0.8398 0.7059
0.5939
0.5000
0.8356 0.6989
0.5851
0.4902
0.5764
0.4806
0.8315
0.8274
0.6920
0.6852
0.5679
0.4712
0.8232 0.6784 0.5595
0.4619
0.4529
0.5513
0.5431
0.8151
0.4440
0.8191 0.6717
0.6650
0.8110 0.6584
0.8070 0.6519
0.8030 0.6454
0.5351
0.4353
0.5272
0.4268
0.5194 0.4184
0.7990 0.6391
0.5117
0.4102
0.7950 0.6327
0.5042
0.4022
0.4967
0.3943
0.7910 0.6265
0.7871 0.6203
0.7832 0.6141
0.3865
0.4894
0.4821
0.3790
0.7793 0.6080
0.4750
0.3715
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
2.5%
0.9756
0.9518
0.9286
0.9060
0.8839
0.8623
0.8413
0.8207
0.8007
0.7812
0.7621
0.7436
0.7254
0.7077
0.6905
0.6736
0.6572
0.6412
0.6255
0.6103
0.5954
0.5809
0.5667
0.5529
0.5394
0.5262
0.5134
0.5009
0.4887
0.4767
0.4651
0.4538
0.4427
0.4319
0.4214
0.4111
0.4011
0.3913
0.3817
0.3724
0.3633
0.3545
0.3458
0.3374
0.3292
0.3211
0.3133
0.3057
0.2982
0.2909
3.0%
0.9709
0.9426
0.9151
0.8885
0.8626
0.8375
0.8131
0.7894
0.7664
0.7441
0.7224
0.7014
0.6810
0.6611
0.6419
0.6232
0.6050
0.5874
0.5703
0.5537
0.5375
0.5219
0.5067
0.4919
0.4776
0.4637
0.4502
0.4371
0.4243
0.4120
0.4000
0.3883
0.3770
0.3660
0.3554
0.3450
0.3350
0.3252
0.3158
0.3066
0.2976
0.2890
0.2805
0.2724
0.2644
0.2567
0.2493
0.2420
0.2350
0.2281
3.5%
0.9662
0.9335
0.9019
0.8714
0.8420
0.8135
0.7860
0.7594
0.7337
0.7089
0.6849
0.6618
0.6394
0.6178
0.5969
0.5767
0.5572
0.5384
0.5202
0.5026
0.4856
0.4692
0.4533
0.4380
0.4231
0.4088
0.3950
0.3817
0.3687
0.3563
0.3442
0.3326
0.3213
0.3105
0.3000
0.2898
0.2800
0.2706
0.2614
0.2526
0.2440
0.2358
0.2278
0.2201
0.2127
0.2055
0.1985
0.1918
0.1853
0.1791
4.0%
0.9615
0.9246
0.8890
0.8548
0.8219
0.7903
0.7599
0.7307
0.7026
0.6756
0.6496
0.6246
0.6006
0.5775
0.5553
0.5339
0.5134
0.4936
0.4746
0.4564
0.4388
0.4220
0.4057
0.3901
0.3751
0.3607
0.3468
0.3335
0.3207
0.3083
0.2965
0.2851
0.2741
0.2636
0.2534
0.2437
0.2343
0.2253
0.2166
0.2083
0.2003
0.1926
0.1852
0.1780
0.1712
0.1646
0.1583
0.1522
0.1463
0.1407
4.5%
0.9569
0.9157
0.8763
0.8386
0.8025
0.7679
0.7348
0.7032
0.6729
0.6439
0.6162
0.5897
0.5643
0.5400
0.5167
0.4945
0.4732
0.4528
0.4333
0.4146
0.3968
0.3797
0.3634
0.3477
0.3327
0.3184
0.3047
0.2916
0.2790
0.2670
0.2555
0.2445
0.2340
0.2239
0.2143
0.2050
0.1962
0.1878
0.1797
0.1719
0.1645
0.1574
0.1507
0.1442
0.1380
0.1320
0.1263
0.1209
0.1157
0.1107
https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/slater_14e/Presentvalue_decimal.htm
5.0%
0.9524
0.9070
0.8538
0.8227
0.7835
0.74162
0.7107
0.6768
0.6446
0.6139
0.5847
0.5568
0.5303
0.5051
0.4810
0.4581
0.4363
0.4155
0.3957
0.3769
0.3589
0.3418
0.3256
0.3101
0.2953
0.2812
0.2578
0.2551
0.24129
0.2314
0.2204
0.2099
0.1999
0.1904
0.1813
0.1727
0.1544
0.1566
0.1491
0.14120
0.1353
0.1288
0.1227
0.1169
0.1113
0.1060
0.1009
0.0961
0.0916
0.0872
5.5%
0.9479
0.8985
0.8516
0.8072
0.7651
0.7252
0.6874
0.6516
0.6176
0.5854
0.5549
0.5260
0.4986
0.4726
0.4479
0.4246
0.4024
0.3815
0.3616
0.3427
0.3249
0.3079
0.2919
0.2767
0.2622
0.2486
0.2356
0.2233
0.2117
0.2006
0.1902
0.1803
0.1709
0.1620
0.1535
0.1455
0.1379
0.1307
0.1239
0.1175
0.1113
0.1055
0.1000
0.0948
0.0899
0.0852
0.0807
0.0765
0.0725
0.0688
6.0%
6.5%
0.9434
0.939
0.8900
0.881
0.8396
0.827
0.7921
0.777
0.7473
0.729
0.7050
0.685
0.6651
0.643
0.6274
0.604
0.5919
0.567
0.5584
0.532
0.5268
0.500
0.4970
0.469
0.4688
0.441
0.4423
0.414
0.4173
0.388
0.3936
0.365
0.3714
0.342
0.3503
0.321
0.3305
0.302
0.3118
0.283
0.2942
0.266
0.2775
0.250
0.2618
0.234
0.2470
0.220
0.2330
0.207
0.2198
0.194
0.2074
0.182
0.1956
0.171
0.1846
0.161
0.1741 0.151
0.1643
0.142
0.1550
0.133
0.1462
0.125
0.1379
0.117
0.1301
0.110
0.1227
0.103
0.1158
0.097
0.1092
0.091
0.1031
0.085
0.0972
0.080
0.0917
0.075
0.0865
0.071
0.0816
0.066
0.0770
0.062
0.0727
0.058
0.0685
0.055
0.0647
0.051
0.0610
0.048
0.0575
0.045
0.0543
0.042
1/1
Transcribed Image Text:Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year's
Sundance Film Festival. If the school raises $15,600 and invests it for 1 year at 3% interest compounded annually, what is the APY
earned? (Use the Table provided.)
Note: Do not round intermediate calculations. Round your answer to the nearest whole percent.
APY
%
Expert Solution
Step 1
The APY helps to calculate the actual interest earned on an investment over a year if the compounding frequency is n times in a year
APY or effective annual interest = (1 + r/n )n – 1
where, r = periodic interest rate
n =time period
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education