TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest) Periods 1% 2% 3% 4% 5% 6% 8% Periods 1.00500 LO 1000 L01500 1.02000 1.03000 1.04000 1.05000 106000 1O7000 1.O8000 1.01003...


Solve the following problem using either Table 11-1 or Table 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)

Omar invests $4,500 at 8% interest, compounded semiannually for 4 years. Calculate the effective interest rate for his investment. (Round to nearest hundredth percent.)



a. 7.84%

b. 8.00%

c. 8.16%

d. 8.32%


TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest)<br>Periods<br>1%<br>2%<br>3%<br>4%<br>5%<br>6%<br>8%<br>Periods<br>1.00500<br>LO 1000<br>L01500<br>1.02000<br>1.03000<br>1.04000<br>1.05000<br>106000<br>1O7000<br>1.O8000<br>1.01003<br>102010<br>103023<br>104O0<br>1.06090<br>1O8 160<br>L10250<br>1.12360<br>1.14490<br>1. 166-40<br>2<br>101 S08<br>1.06 121<br>1O8 243<br>3<br>104568<br>1.09273<br>1.12486<br>L15763<br>L19102<br>1.22504<br>1.29971<br>3<br>121551<br>127628<br>1.02015<br>1O060<br>106136<br>1.12551<br>1.16986<br>1.26248<br>1.31080<br>1.36049<br>1.02525<br>105101<br>1077 28<br>1.10408<br>1.15927<br>121665<br>133823<br>1.40255<br>1.46933<br>1.50073<br>1.605 78<br>1.718 19<br>106152<br>109344<br>1.12616<br>1.19405<br>1.26532<br>134010<br>14 1852<br>1.586 87<br>1.03553<br>107214<br>1.10984<br>1.14869<br>1.22987<br>131993<br>1.40710<br>1.50363<br>1.71382<br>LO8286<br>L12649<br>1.17 166<br>1.26677<br>1.36857<br>147746<br>1.5938S<br>1.8S093<br>8.<br>1.04071<br>1.04991<br>109369<br>L14339<br>1.19509<br>1.30477<br>142331<br>1.55133<br>1.68948<br>1.99900<br>10<br>1.05 114<br>L10462<br>L16054<br>12199<br>1.3492<br>1.48024<br>1.62889<br>1.79085<br>1.967 I5<br>2. 15892<br>10<br>1.7 1034<br>2. 10485<br>2.252 19<br>11<br>105640<br>LI1567<br>L17795<br>1.24337<br>1.38423<br>1.53945<br>1898 30<br>2.33164<br>11<br>12<br>1.06 168<br>112683<br>L19562<br>1.26824<br>142576<br>1.60 103<br>1.79586<br>201220<br>2.518 17<br>12<br>121355<br>2.409 KS<br>2.57853<br>2.79903<br>13<br>1.06699<br>L13809<br>1.29361<br>146853<br>1.66507<br>L88565<br>2.13293<br>2.71962<br>13<br>151259<br>1.55797<br>14<br>1.07232<br>L1447<br>1231 76<br>131948<br>1.73 168<br>197993<br>226090<br>2.937 19<br>14<br>15<br>1.07768<br>L16097<br>125023<br>1.34 S87<br>1.80094<br>2.07893<br>2.39656<br>3.17217<br>15<br>16<br>1O8 307<br>1.17258<br>1.26899<br>1.37279<br>160471<br>187298<br>2.18287<br>2540 35<br>2.952 16<br>3.42594<br>16<br>17<br>1.O8849<br>LIS430<br>1.28802<br>1.40024<br>1.65285<br>1.94790<br>229202<br>2.69277<br>3. 158 82<br>3.70002<br>17<br>18<br>109393<br>L19615<br>1307 4<br>142825<br>1.20243<br>2.02582<br>240662<br>285434<br>3.37993<br>3.99602<br>18<br>19<br>1.09940<br>1.20811<br>132695<br>1.45681<br>1.75351<br>2.10685<br>252695<br>3.02560<br>3.61653<br>4.31570<br>19<br>20<br>1.1090<br>122019<br>1346 86<br>1.48998<br>1.80611<br>2.19112<br>265330<br>3.207 14<br>3. 86968<br>4.66096<br>20<br>4. 140 56<br>4.43040<br>21<br>L11042<br>1.23239<br>136706<br>151567<br>1.86029<br>2.27877<br>2.78596<br>3.399 56<br>5.03383<br>21<br>22<br>L.1197<br>1.24472<br>138756<br>1.54998<br>1.91610<br>2.36992<br>292526<br>3.60354<br>5.4654<br>22<br>1408 38<br>2.46472<br>5.87146<br>6.341 I8<br>6. 848 48<br>23<br>1.12155<br>1.25716<br>1.5760<br>1.97359<br>3.07152<br>3.81975<br>4.74053<br>23<br>24<br>1.12716<br>1.26973<br>142950<br>1.60844<br>2.03279<br>2.56330<br>322510<br>404893<br>5.07237<br>24<br>25<br>1.13280<br>1.28243<br>145095<br>1.64061<br>2.09378<br>2.66 584<br>3335<br>4.29187<br>5.42743<br>25<br>Periods<br>9%<br>11%<br>12%<br>13%<br>15%<br>17%<br>18%<br>Periods<br>10%<br>LI000<br>14%<br>16%<br>1.09000<br>LI 1000<br>1.12000<br>1.13000<br>1.14000<br>LIS000<br>L16000<br>1.17000<br>1. 18000<br>2<br>LI8SIO<br>12 1000<br>1232 10<br>1.25440<br>1.27690<br>1.29960<br>132250<br>134560<br>1.36890<br>1.39240<br>3.<br>1.29503<br>133100<br>1.36763<br>1.40493<br>1.44290<br>1.48 154<br>152088<br>1.56090<br>1.60161<br>1.64303<br>3.<br>L87389<br>2. 19245<br>141 158<br>1.46410<br>15 1807<br>1.57352<br>1.63047<br>1.68896<br>1.7401<br>18 1064<br>1.938 78<br>4<br>1.53862<br>1.6 105 I<br>1.68506<br>1.76234<br>184244<br>1.92541<br>201136<br>2.1004<br>2.287 76<br>1.97 82<br>2.21068<br>167710<br>1.77156<br>187041<br>2.08 195<br>2.19497<br>231306<br>24640<br>2.565 16<br>2.69955<br>6<br>3. I8S47<br>3.758 86<br>1.82804<br>194872<br>2076 16<br>2.35261<br>2.50227<br>266002<br>282622<br>3.001 24<br>1.99256<br>214359<br>2.30454<br>2.47596<br>2.65844<br>2.85 259<br>3.05902<br>3.27841<br>3.51145<br>8<br>2.17 189<br>2.77 308<br>3.10585<br>235795<br>255804<br>3.00-404<br>3.25 195<br>351788<br>3.80296<br>4. 10840<br>4.41545<br>10<br>2.36736<br>259374<br>283942<br>3.39457<br>3.70722<br>4.04556<br>4.41144<br>5.21384<br>10<br>2.58043<br>285312<br>3.15176<br>3.47855<br>3.83586<br>4.22623<br>4.65239<br>5.1 1726<br>5.62399<br>6.17593<br>11<br>11<br>12<br>2.81 266<br>3.1843<br>349845<br>3.89598<br>4.33452<br>4.81790<br>535025<br>593603<br>6.58007<br>7.28759<br>12<br>8.999 M<br>10. 14724<br>13<br>3.06 S80<br>3.45227<br>3883 28<br>4.69<br>4.89 801<br>5.49241<br>6.15279<br>6.88S79<br>7.69868<br>13<br>14<br>3.34173<br>3.79750<br>4.3 1044<br>4.88711<br>5.53475<br>6.26 135<br>7.07571<br>798752<br>9.00745<br>14<br>15<br>3.64248<br>4.17725<br>4.78459<br>547 157<br>6.25427<br>7.13794<br>8.13706<br>9.26552<br>10.53872<br>I1.97375<br>15<br>16<br>3.97031<br>4.5997<br>53 1089<br>6.13039<br>7.06733<br>8.13725<br>935762<br>10.74800<br>12.330 30<br>14. 12902<br>16<br>17<br>4.32763<br>505447<br>5.89509<br>6.86604<br>7.98608<br>9.27646<br>10.76126<br>1246768<br>14.426-46<br>16.67225<br>17<br>19.673 25<br>23.21444<br>18<br>4.71712<br>555992<br>6.54355<br>7.68997<br>9.02427<br>10.57517<br>1237545<br>1446251<br>16.87895<br>18<br>19.748 38<br>23. 1O560<br>19<br>5.14 166<br>6.1 1991<br>7.26334<br>8.61276<br>10.19742<br>12.05 569<br>1423177<br>16.77652<br>19<br>20<br>5.60441<br>6.72750<br>8.06231<br>9.64629<br>I1.5209<br>13.74349<br>1636654<br>1946076<br>27.39303<br>20<br>27.03355<br>32.323 78<br>38. 14206<br>21<br>6.10881<br>7.40025<br>894917<br>10.NO NRS<br>13.02 109<br>15.66758<br>1882152<br>2257448<br>21<br>22<br>6.65 860<br>8.14027<br>993357<br>12.10031<br>14.71 383<br>17.86 104<br>2164475<br>26.1 8640<br>31.62925<br>22<br>37.006 23 45.00763<br>43. 29729 53. 10901<br>23<br>7.25787<br>8.95430<br>11.02627<br>13.55215<br>16.62663<br>20.36 158 2489146<br>30.37622<br>23<br>12239 16<br>13.58S46<br>15.1786<br>23.21 221<br>26.46 192 3291895<br>24<br>7.91 108<br>9.84973<br>18.78S09<br>28.62518 3523642<br>24<br>25<br>8.62 O8<br>17.00006<br>21.23054<br>50.65783 62.6863<br>25<br>108471<br>4087424<br>The values in Table 11-1 were generated by the formula FV = (1 + iy rounded to five decimal places, where i is the interest<br>rate per period and n is the total number of periods.<br>=<br>

Extracted text: TABLE 11-1 Compound Interest Table (Future Value of $1 at Compound Interest) Periods 1% 2% 3% 4% 5% 6% 8% Periods 1.00500 LO 1000 L01500 1.02000 1.03000 1.04000 1.05000 106000 1O7000 1.O8000 1.01003 102010 103023 104O0 1.06090 1O8 160 L10250 1.12360 1.14490 1. 166-40 2 101 S08 1.06 121 1O8 243 3 104568 1.09273 1.12486 L15763 L19102 1.22504 1.29971 3 121551 127628 1.02015 1O060 106136 1.12551 1.16986 1.26248 1.31080 1.36049 1.02525 105101 1077 28 1.10408 1.15927 121665 133823 1.40255 1.46933 1.50073 1.605 78 1.718 19 106152 109344 1.12616 1.19405 1.26532 134010 14 1852 1.586 87 1.03553 107214 1.10984 1.14869 1.22987 131993 1.40710 1.50363 1.71382 LO8286 L12649 1.17 166 1.26677 1.36857 147746 1.5938S 1.8S093 8. 1.04071 1.04991 109369 L14339 1.19509 1.30477 142331 1.55133 1.68948 1.99900 10 1.05 114 L10462 L16054 12199 1.3492 1.48024 1.62889 1.79085 1.967 I5 2. 15892 10 1.7 1034 2. 10485 2.252 19 11 105640 LI1567 L17795 1.24337 1.38423 1.53945 1898 30 2.33164 11 12 1.06 168 112683 L19562 1.26824 142576 1.60 103 1.79586 201220 2.518 17 12 121355 2.409 KS 2.57853 2.79903 13 1.06699 L13809 1.29361 146853 1.66507 L88565 2.13293 2.71962 13 151259 1.55797 14 1.07232 L1447 1231 76 131948 1.73 168 197993 226090 2.937 19 14 15 1.07768 L16097 125023 1.34 S87 1.80094 2.07893 2.39656 3.17217 15 16 1O8 307 1.17258 1.26899 1.37279 160471 187298 2.18287 2540 35 2.952 16 3.42594 16 17 1.O8849 LIS430 1.28802 1.40024 1.65285 1.94790 229202 2.69277 3. 158 82 3.70002 17 18 109393 L19615 1307 4 142825 1.20243 2.02582 240662 285434 3.37993 3.99602 18 19 1.09940 1.20811 132695 1.45681 1.75351 2.10685 252695 3.02560 3.61653 4.31570 19 20 1.1090 122019 1346 86 1.48998 1.80611 2.19112 265330 3.207 14 3. 86968 4.66096 20 4. 140 56 4.43040 21 L11042 1.23239 136706 151567 1.86029 2.27877 2.78596 3.399 56 5.03383 21 22 L.1197 1.24472 138756 1.54998 1.91610 2.36992 292526 3.60354 5.4654 22 1408 38 2.46472 5.87146 6.341 I8 6. 848 48 23 1.12155 1.25716 1.5760 1.97359 3.07152 3.81975 4.74053 23 24 1.12716 1.26973 142950 1.60844 2.03279 2.56330 322510 404893 5.07237 24 25 1.13280 1.28243 145095 1.64061 2.09378 2.66 584 3335 4.29187 5.42743 25 Periods 9% 11% 12% 13% 15% 17% 18% Periods 10% LI000 14% 16% 1.09000 LI 1000 1.12000 1.13000 1.14000 LIS000 L16000 1.17000 1. 18000 2 LI8SIO 12 1000 1232 10 1.25440 1.27690 1.29960 132250 134560 1.36890 1.39240 3. 1.29503 133100 1.36763 1.40493 1.44290 1.48 154 152088 1.56090 1.60161 1.64303 3. L87389 2. 19245 141 158 1.46410 15 1807 1.57352 1.63047 1.68896 1.7401 18 1064 1.938 78 4 1.53862 1.6 105 I 1.68506 1.76234 184244 1.92541 201136 2.1004 2.287 76 1.97 82 2.21068 167710 1.77156 187041 2.08 195 2.19497 231306 24640 2.565 16 2.69955 6 3. I8S47 3.758 86 1.82804 194872 2076 16 2.35261 2.50227 266002 282622 3.001 24 1.99256 214359 2.30454 2.47596 2.65844 2.85 259 3.05902 3.27841 3.51145 8 2.17 189 2.77 308 3.10585 235795 255804 3.00-404 3.25 195 351788 3.80296 4. 10840 4.41545 10 2.36736 259374 283942 3.39457 3.70722 4.04556 4.41144 5.21384 10 2.58043 285312 3.15176 3.47855 3.83586 4.22623 4.65239 5.1 1726 5.62399 6.17593 11 11 12 2.81 266 3.1843 349845 3.89598 4.33452 4.81790 535025 593603 6.58007 7.28759 12 8.999 M 10. 14724 13 3.06 S80 3.45227 3883 28 4.69 4.89 801 5.49241 6.15279 6.88S79 7.69868 13 14 3.34173 3.79750 4.3 1044 4.88711 5.53475 6.26 135 7.07571 798752 9.00745 14 15 3.64248 4.17725 4.78459 547 157 6.25427 7.13794 8.13706 9.26552 10.53872 I1.97375 15 16 3.97031 4.5997 53 1089 6.13039 7.06733 8.13725 935762 10.74800 12.330 30 14. 12902 16 17 4.32763 505447 5.89509 6.86604 7.98608 9.27646 10.76126 1246768 14.426-46 16.67225 17 19.673 25 23.21444 18 4.71712 555992 6.54355 7.68997 9.02427 10.57517 1237545 1446251 16.87895 18 19.748 38 23. 1O560 19 5.14 166 6.1 1991 7.26334 8.61276 10.19742 12.05 569 1423177 16.77652 19 20 5.60441 6.72750 8.06231 9.64629 I1.5209 13.74349 1636654 1946076 27.39303 20 27.03355 32.323 78 38. 14206 21 6.10881 7.40025 894917 10.NO NRS 13.02 109 15.66758 1882152 2257448 21 22 6.65 860 8.14027 993357 12.10031 14.71 383 17.86 104 2164475 26.1 8640 31.62925 22 37.006 23 45.00763 43. 29729 53. 10901 23 7.25787 8.95430 11.02627 13.55215 16.62663 20.36 158 2489146 30.37622 23 12239 16 13.58S46 15.1786 23.21 221 26.46 192 3291895 24 7.91 108 9.84973 18.78S09 28.62518 3523642 24 25 8.62 O8 17.00006 21.23054 50.65783 62.6863 25 108471 4087424 The values in Table 11-1 were generated by the formula FV = (1 + iy rounded to five decimal places, where i is the interest rate per period and n is the total number of periods. =
Jun 07, 2022
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