Narrative 11-1
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent)
-Refer to Narrative in your text 11-1. Calculate the compound interest on an investment of $45,000 at 6% interest, compounded quarterly, for 3 years.
A) $8,802.90
B) $8,802.00
C) $53,802.90
D) $2,992.42

Question

Quizplus · Accepted Answer

The compound interest formula is A = P(1 + r/n)^(nt) - P. Here, P = $45,000, r = 0.06, n = 4, t = 3. Calculate A and subtract P to find the interest.

Narrative 11-1 Solve the Following Problems Using Either Tables 11-1 or 11-2