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. Marcus invests $8,000, at 8% interest, compounded annually for 15 years. Calculate the compound interest for his investment.
A) $17,377.36
B) $17,565.40
C) $1,765.40
D) $17,556.40

Question

Quizplus · Accepted Answer

The correct answer is A. $17,377.36.The formula for compound interest is A = P(1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years.In this case, P = $8,000, r = 8%, n = 1 (since the interest is compounded annually), and t = 15. Plugging these values into the formula, we get A = $17,377.36.

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