# Finance

For the following investment, calculate the present value (principal) and the compound interest. Use Table 11-2. Round your answers to the nearest cent.

Compound Amount \$130,000

Term of Investment 12 yrs

Nominal Rate 11%

Interest Compounded (annually)

Present Value \$________

Compound Interest \$________

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1. same type again

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2. Po(1+r)^n = 130,000.
Po = present value.
r = 0.11 = annual % rate.
n = 12 = the number of compounding periods.

I = P-Po = 130,000-Po.

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