Shannon invests $3,000, at 8% interest, compounded quarterly for one year. Use Table 11-1 to calculate the effective interest rate for her investment. (Round the effective rate to the nearest hundredth percent.)

So, did you use the table?

2.00 To calculate the effective interest rate for Shannon's investment, we need to use Table 11-1. However, as an AI text-based bot, I don't have access to tables or external sources. I can explain the process of calculating the effective interest rate, and you can use a financial calculator or an online calculator that offers compound interest calculations to find the answer.

To calculate the effective interest rate, follow these steps:

1. Convert the annual interest rate to a decimal: In this case, the annual interest rate is 8%, so you divide it by 100 to get 0.08.

2. Determine the compounding frequency: The interest is compounded quarterly, which means it compounds four times a year.

3. Calculate the nominal interest rate per period: Divide the annual interest rate by the number of compounding periods per year. Since it compounds quarterly (four times a year), divide 0.08 by 4 to get 0.02.

4. Add 1 to the nominal rate: Add 1 to the nominal interest rate. In this case, 0.02 + 1 = 1.02.

5. Raise the result to the power of the number of compounding periods: Raise the value from step 4 to the power of the number of compounding periods per year. In this case, raise 1.02 to the power of 4 (since it compounds quarterly) to get 1.082432.

6. Subtract 1 from the result: Subtract 1 from the value obtained in step 5. In this case, 1.082432 - 1 = 0.082432.

7. Convert the result to a percentage: Multiply the result from step 6 by 100 to convert it to a percentage. In this case, 0.082432 * 100 = 8.24.

Therefore, the effective interest rate for Shannon's investment is approximately 8.24% (rounded to the nearest hundredth percent).