Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 11-1 to calculate the compound amount for her investment
amount = 3000( 1 + .06/12)^12
= 3185.03
Didn't know tables were still being used in this topic.
To calculate the compound amount for Anny's investment, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = The compound amount (the final value of the investment)
P = The principal amount (the initial investment)
r = The interest rate (in decimal form)
n = The number of times interest is compounded per year
t = The number of years
In this case, Anny invests $3,000 at an interest rate of 6% compounded monthly for 1 year. Let's break down the values:
P = $3,000
r = 6% = 0.06 (since it's given as a percentage, we need to convert it to decimal form)
n = 12 (since interest is compounded monthly)
t = 1 (since it's for 1 year)
Now, let's calculate the compound amount (A):
A = 3000(1 + 0.06/12)^(12*1)
To calculate A, we can use a calculator or a spreadsheet program. However, since you mentioned Table 11-1, it might be a table of compound interest factors related to different interest rates and time periods.
In this case, you need to find the factor for the interest rate of 6% (0.06) and the time period of 1 year (12 months). Find the intersection of the row for 6% and the column for 12 months in Table 11-1. The value in that cell is the compound interest factor.
Once you have the compound interest factor, you can multiply it by the principal amount:
A = 3000 * compound interest factor
This will give you the compound amount for Anny's investment.