Explanation Given Information: A loan of amount of $ 5000 at 12 % compounded quarterly for two years. Formula used: Steps to find the future value and compound interest using a $ 1.00 future value table: 1. First determine the number of interest periods by multiplying the number of years and the number of interest periods per year as Interest Period = number of years × number of interest periods per year 2. Find the periodic interest rate using the formula Period interest rate = annual interest rate number of interest period per year 3. Determine the table value using table 13.1 , select the period’s row corresponding to the number of interest periods and rate per period column. 4. Multiply the original value by the table value from above step to determine the future value as Future value or Compound Amount = principal × table value 5. Determine the compound interest by subtracting original value from future value as Compund Interest = Future Value − Original Principal Calculation: Consider a loan of amount of $ 5000 at 12 % compounded quarterly for two years. Interest Period = number of years × number of interest periods per year = 2 × 4 = 8 periods Since the interest is compounded 4 times in a year that is compounded quarterly

Pearson eText for Business Math -- Instant Access (Pearson+)

11th Edition

ISBN: 9780137518883

Author: Cheryl Cleaves, Margie Hobbs

Publisher: PEARSON+

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 13, Problem 34ES

To determine

To calculate: The compound interest on a loan of amount of $5000 at 12% compounded quarterly for two years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 13, Problem 33ES

Chapter 13, Problem 35ES

Students have asked these similar questions

The difference in length of a spring on a pogo stick from its non-compressed length when a teenager is jumping on it after θ seconds can be described by the function f(θ) = 2sinθ + √2.Part A: Determine all values where the pogo stick's spring will be equal to its non-compressed length. Part B: If the angle was doubled, that is θ became 2θ, what are the solutions in the interval [0, 2π)? How do these compare to the original function?Part C: A toddler is jumping on another pogo stick whose length of its spring can be represented by the function g(θ) = 1 cos^2θ + √2. At what times are the springs from the original pogo stick and the toddler's pogo stick lengths equal?

3. [15] The joint PDF of RVS X and Y is given by fx.x(x,y) = { x) = { c(x + { c(x+y³), 0, 0≤x≤ 1,0≤ y ≤1 otherwise where c is a constant. (a) Find the value of c. (b) Find P(0 ≤ X ≤,

The analysis of results from a leaf transmutation experiment (turning a leaf into a petal) is summarized by the type of transformation completed: A naturalist randomly selects three leaves from this set without replacement. Total Textural Transformation Yes No Total Yes 243 26 269 Total Color Transformation No 13 18 31 Total 256 44 300 Let X represent the number of leaves that have undergone both transformations. The appropriate probability distribution of X is a distribution. The parameters are population size N = size n = number of events K = and sample The probability that at least one leaf has undergone both transformations is probability to four decimal places.) X has a N = K= n = The requested probability is distribution. (Round the

Chapter 13 Solutions

Pearson eText for Business Math -- Instant Access (Pearson+)

Ch. 13.1 - Prob. 1-1SC Ch. 13.1 - Prob. 1-2SC Ch. 13.1 - Prob. 1-3SC Ch. 13.1 - Prob. 1-4SC Ch. 13.1 - Prob. 2-1SC Ch. 13.1 - Prob. 2-2SC Ch. 13.1 - Prob. 2-3SC Ch. 13.1 - Prob. 2-4SC Ch. 13.1 - Prob. 3-1SC Ch. 13.1 - Prob. 3-2SC

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 compound interest on a loan of amount of $ 5000 at 12 % compounded quarterly for two years.

Concept explainers

Videos

To calculate: The compound interest on a loan of amount of $5000 at 12% compounded quarterly for two years.

Want to see the full answer?

Chapter 13 Solutions