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 - With LMS CengageNOW

8th Edition

ISBN: 9781337125468

Author: Brechner

Publisher: Cengage

See similar textbooks

Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 …

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experime…

Videos

Question

Chapter 11.II, Problem 6TIE

To determine

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 11.I, Problem 40RE

Chapter 11.II, Problem 7TIE

Students have asked these similar questions

A marketing professor has surveyed the students at her university to better understand attitudes towards PPT usage for higher education. To be able to make inferences to the entire student body, the sample drawn needs to represent the university’s student population on all key characteristics. The table below shows the five key student demographic variables. The professor found the breakdown of the overall student body in the university’s fact book posted online. A non-parametric chi-square test was used to test the sample demographics against the population percentages shown in the table above. Review the output for the five chi-square tests on the following pages and answer the five questions: Based on the chi-square test, which sample variables adequately represent the university’s student population and which ones do not? Support your answer by providing the p-value of the chi-square test and explaining what it means. Using the results from Question 1, make recommendation for…

Question 9 1 5 4 3 2 1 -8 -7 -05 -4 -3 -2 1 1 2 3 4 5 6 7 8 -1 7 -2 -3 -4 -5+ 1-6+ For the graph above, find the function of the form -tan(bx) + c f(x) =

Question 8 5 4 3 2 1 -8 -7 -6 -5/-4 -3 -2 -1, 1 2 3 4 5 6 7/8 -1 -2 -3 -4 -5 0/1 pt 3 98 C -6 For the graph above, find the function of the form f(x)=a tan(bx) where a=-1 or +1 only f(x) = = Question Help: Video Submit Question Jump to Answer

Chapter 11 Solutions

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

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

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

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 .

Solution Summary: The author calculates the amount Count Gustav must invest at 8% interest compounded quarterly.

Concept explainers

Videos

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.

Want to see the full answer?

Chapter 11 Solutions