Scott invests $1,500, at 12% interest, compounded quarterly for 8 years. Use Table 11-1 to calculate the compound amount for his investment
If you look at the table, you should find a value of
1500(1+.12/4)^(4*8) = 3862.62
To calculate the compound amount for Scott's investment, we can use the formula for compound interest:
Compound Amount = Principal Amount * (1 + (Interest Rate / Number of Compounding Periods))^(Number of Compounding Periods * Number of Years)
In this case, Scott invested $1,500 at an interest rate of 12% and the interest is compounded quarterly for 8 years. The table mentioned, Table 11-1, provides the compound amount factor for a given interest rate and number of periods.
Since the number of compounding periods is quarterly, we need to divide the number of years by 1/4 to get the number of quarters. So, 8 years would be equivalent to 8 * 4 = 32 quarters.
First, we need to find the compound amount factor from Table 11-1 for an interest rate of 12% and 32 quarters.
Next, we multiply the principal amount ($1,500) by the compound amount factor to find the compound amount.
Let's find the compound amount using Table 11-1:
Step 1: Find the compound amount factor for 12% interest rate and 32 quarters from Table 11-1.
Step 2: Once you have the compound amount factor, multiply it by the principal amount of $1,500 to find the compound amount.
Unfortunately, as an AI text-based bot, I do not have access to specific tables like Table 11-1. You can refer to finance or investment textbooks or use online resources that provide compound amount factors for different interest rates and compounding periods.
To find the compound amount using Table 11-1, you can look up the corresponding compound amount factor and then multiply it by the principal amount.