Use Table 12-1 to solve. suppose a certain manufacturer deposits $7,000 at the beginning of each 3 month period for 6 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in s) will be in the account at the end of the 6 year period? $ 217212.10 ✔ (b) What is the total amount (in s) of interest earned in this account? $

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
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How would part b be answered? How does one find the total amount $ of interest earned in account
**Problem Solving Exercise**

Use Table 12-1 to solve:

Suppose a certain manufacturer deposits $7,000 at the beginning of each 3-month period for 6 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.)

(a) How much (in $) will be in the account at the end of the 6-year period?
   - **Answer:** $217242.10 ✓

(b) What is the total amount (in $) of interest earned in this account?
   - **Answer:** $ ______ ✗

**Note:**
This exercise involves calculating compound interest for regular deposits over a period of time. The manufacturer makes quarterly deposits, and the interest is compounded quarterly, aligning with the deposit frequency. The solution requires use of the given Table 12-1 for accuracy in calculation.
Transcribed Image Text:**Problem Solving Exercise** Use Table 12-1 to solve: Suppose a certain manufacturer deposits $7,000 at the beginning of each 3-month period for 6 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 6-year period? - **Answer:** $217242.10 ✓ (b) What is the total amount (in $) of interest earned in this account? - **Answer:** $ ______ ✗ **Note:** This exercise involves calculating compound interest for regular deposits over a period of time. The manufacturer makes quarterly deposits, and the interest is compounded quarterly, aligning with the deposit frequency. The solution requires use of the given Table 12-1 for accuracy in calculation.
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