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. Lanie invests $8,500, at 6% interest, compounded quarterly for 10 years. Calculate the compound amount for her investment.
A) $15,419.26
B) $14,780.12
C) $11,190.12
D) $14,885.03

Question

Quizplus · Accepted Answer

To calculate the compound amount for Lanie's investment, we use the formula for compound interest: A = P(1 + r/n)^(nt), where P is the principal amount ($8,500), r is the annual interest rate (6% or 0.06), n is the number of times the interest is compounded per year (quarterly, so 4 times), and t is the time the money is invested for (10 years). Plugging in the values: A = 8500(1 + 0.06/4)^(4*10) = $15,419.26.

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