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Use the compound interest table on p. 28 to complete each row below.

Annual
Interest Compounded
Rate
$900.00 5.50%
$640.00 6.00%
$1,340.00 5.00%
$6,231.40 5.75%
$3,871.67 12.00%
$9,000.00 18.00%
Quarterly a.
a.
Semiannually a.
Quarterly
Semiannually a.
Monthly a.
Monthly
a.
Rate per
Period
Total
Time
Total
Number of
Periods
2 years b.
4 years b.
3
years b.
years b.
4 years b.
2 years b.
C.
C.
C.
C.
C.
C.
Amount
Compound
Interest
d.
d.
d.
d.
d.
d.

Use the compound interest table on p. 28 to complete each row below. Annual Interest-example-1

1 Answer

3 votes

Answer:To complete the table using the compound interest table on page 28, we can use the following steps:

Determine the rate per period based on the given annual interest rate and compounding frequency.

Calculate the total number of periods based on the total time and compounding frequency.

Use the compound interest table to find the factor for the rate per period and the total number of periods.

Multiply the factor by the initial amount to find the amount after compound interest.

Subtract the initial amount from the amount after compound interest to find the compound interest.

Using these steps, we can complete the table as follows:

Annual

Interest Compounded

Rate

$900.00 5.50% Quarterly 1.375% 2 years 8

$640.00 6.00% Semiannually 3.00% 4 years 8

$1,340.00 5.00% Quarterly 1.25% 3 years 12

$6,231.40 5.75% Semiannually 2.875% 4 years 8

$3,871.67 12.00% Monthly 1.000% 4 years 48

$9,000.00 18.00% Monthly 1.500% 2 years 24

Quarterly 0.016%

Semiannually 0.033%

Monthly 0.058%

Monthly 0.058%

Monthly 1.500%

Quarterly 0.450%

Total

Time

2 years

4 years

3 years

4 years

4 years

2 years

Total

Number of

Periods

8

8

12

8

48

24

C.

$1,042.36

$812.65

$1,519.39

$7,305.10

$8,980.54

$20,790.56

Amount

Compound

Interest

d.

$42.36

$172.65

$119.39

$3,074.70

$4,109.87

$11,790.56

Note: The values in row C represent the amount after compound interest, and the values in row d represent the compound interest. The quarterly, semiannually, and monthly rates are rounded to three decimal places for convenience.

Explanation:

User Shiv Kumar Ganesh
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