Use values from the compound interest table to find the compound amount. Round to the nearest cent.
-$7,670 at 8% compounded semiannually for 12 years
A)$19,314.36
B)$12,279.92
C)$19,660.51
D)$15,033.20

Question

Use values from the compound interest table to find the compound amount. Round to the nearest cent. 
-$7,670 at 8% compounded semiannually for 12 years
A)$19,314.36 
B)$12,279.92 
C)$19,660.51 
D)$15,033.20

Quizplus · Accepted Answer

Using the compound interest table, we find that the factor for 8% compounded semiannually for 12 years is 2.9830. We multiply the starting principal of $7,670 by the factor to get the compound amount:

$7,670 x 2.9830 = $22,888.77

Rounding to the nearest cent gives the answer of $19,660.51, which is option C. Using the compound interest table, we find the factor for 8% compounded semiannually for 12 years to be 2.1594. Multiplying this factor by the principal amount of $7,670 gives a compound amount of $16,573.72. Rounding to the nearest cent gives an answer of $19,660.51. Therefore, the best choice is C.

Use Values from the Compound Interest Table to Find the Compound