Explanation Given information: An investment with principal $ 34 , 700 is made for 11 years at 4 % compounded quarterly. Formula used: Compounding periods = Term of investments ( years ) × period per year Interest rate per period = Nominal Rate Period per year Compound amount = Table factor × Principal In table 11-1, the table factor is the intersection of the rate-per-period column and the number-of-periods row is the future value of $ 1 at compound interest. When the number of periods of an investment is greater than the number of periods provided by the compound interest table, then compute a new table factor by following below steps: Step1. For the stated interest rate per period, find the two table factors that represent half, or values as close as possible to half, of the periods required. Step2. Multiply the two table factors from step 1 to form the new factor. Step3. Round the new factor to five decimal places. Calculation: Consider the investment with principal $ 34 , 700 is made for 11 years at 4 % compounded quarterly and solve as shown below: Compounding periods = Term of investments ( years )

Contemporary Mathematics for Business and Consumers

7th Edition

ISBN: 9781285189758

Author: Robert Brechner, George Bergeman

Publisher: Cengage Learning

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Chapter 11.I, Problem 21RE

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To calculate: The new table factor and the compound amount when the investment of principal $34,700 is made for 11 years at 4% compounded quarterly.

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Chapter 11.I, Problem 20RE

Chapter 11.I, Problem 22RE

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Chapter 11 Solutions

Contemporary Mathematics for Business and Consumers

Ch. 11.I - Gail Parker invested $10,000 at 6% interest...Ch. 11.I - Jenny Chao invested $20,000 at 6% interest...Ch. 11.I - Prob. 3TIE Ch. 11.I - Jill Quinn invested $7,000 in a certificate of...Ch. 11.I - Prob. 5TIE Ch. 11.I - Prob. 1RE Ch. 11.I - For the following investments, find the total...Ch. 11.I - For the following investments, find the total...Ch. 11.I - Prob. 4RE Ch. 11.I - Prob. 5RE

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The new table factor and the compound amount when the investment of principal $ 34 , 700 is made for 11 years at 4 % compounded quarterly.

Solution Summary: The author calculates the new table factor and the compound amount when the investment of principal 34,700 is made for 11 years at 4% compounded quarterly.

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To calculate: The new table factor and the compound amount when the investment of principal $34,700 is made for 11 years at 4% compounded quarterly.

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Chapter 11 Solutions