Explanation Given information: The compound Amount is $ 3 , 000 , 000 . The interest rate is 8% . The period is 3 years . Formula used: Steps for using the present value table: Step I: Scan across the top row to find the interest rate per period. Step II: Look down that column to the row corresponding to the number of periods. Step III: The table factor found at the intersection of the rate-per-period column and the number-of-periods row is the present value of $ 1 at compound interest. Multiply the table factor by the compound amount to determine the present value. Present Value: Present Value = Table Factor × Compounded Amount Calculation: The provided interest rate 8% compounded quarterly, 8 4 = 2 % The interest should be used as 2% per period as, The period will be taken as 12 periods as, 3 × 4 = 12 periods Thus, the revised information will be as follows: The compound amount is $ 3 , 000 , 000

Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version

8th Edition

ISBN: 9781305867192

Author: Robert Brechner, Geroge Bergeman

Publisher: South-Western College Pub

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Chapter 11.II, Problem 6TIE

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To calculate: The amount Count Gustav must invest now at 8% interest compounded quarterly to have $3,000,000, 3 years from now as he wants to renovate his castle in Boulogne in 3 years and estimates the cost to be $3,000,000.

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Chapter 11.I, Problem 40RE

Chapter 11.II, Problem 7TIE

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Chapter 11 Solutions

Contemporary Mathematics For Business & Consumers, Brief Edition, Loose-leaf Version

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 amount Count Gustav must invest now at 8 % interest compounded quarterly to have $ 3 , 000 , 000 , 3 years from now as he wants to renovate his castle in Boulogne in 3 years and estimates the cost to be $ 3 , 000 , 000 .

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To calculate: The amount Count Gustav must invest now at 8% interest compounded quarterly to have $3,000,000, 3 years from now as he wants to renovate his castle in Boulogne in 3 years and estimates the cost to be $3,000,000.

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Chapter 11 Solutions