Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use Table 11-1 to calculate the compound amount for her investment.
so, what did Table 11-1 say?
yes
To calculate the compound amount for Anny's investment, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A is the compound amount
P is the principal amount (initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, Anny's principal amount is $3,000, the annual interest rate is 6% (or 0.06 as a decimal), the interest is compounded monthly (so n = 12), and the investment is for 1 year (so t = 1).
Plugging in the values into the formula, we get:
A = 3000(1 + 0.06/12)^(12*1)
Now, let's use Table 11-1 to find the value of (1 + 0.06/12)^12. The table will give us the factor we need to multiply with the principal amount.
Looking at the table, find the row that corresponds to n = 12 and look for the column where the interest rate 0.06 (or 6%) intersects with the row.
On the row for n = 12, find the column for the interest rate 0.06 (or 6%). Let's call this factor F.
Now, we can calculate the compound amount A by multiplying the principal amount P with the factor F:
A = 3000 * F
Using the value of F from the table, multiply it by the principal amount P to find the compound amount A.