Please help with finding the solution for Principal amount at the beginning of year 3.

Edit View History Bookmarks Window Help Sun 1 v2.cengagenow.com O of Managerial Accounting (ABV2037A) CengageNOWv2 | Online teaching and learning resource from Cengage Lear... G average net income - Google Search Week 5 CNOW Assignment Calculator With compound interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compounding. This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate how many interest computations are required (i.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Ross Co., fearing that you wouldn't take its deal, decides instead to offer you compound interest on the same $11,000 note. How much will Ross pay you at the end of three years if interest is compounded annually at a rate of 9%? If required, round your answers to the nearest cent. Principal Annual Amount of Accumulated Amount at Amount at Interest (Principal at End of Year (Principal at Beginning of Beginning of Year x Beginning of Year + Annual Year Year 9%) Amount of Interest) 1 $11,000 $990 $11,990 N $11,990 W X If you were given the choice to receive more or less compounding periods, which would you choose in order to maximize your monetary situation? More v Feedback Check My Work To solve compounding interest, interest is added to principal in the calculation of interest in future periods. compounding periods per year. APPLY THE CONCEPTS: Present value of a single amount in the future Check My Work Previous Assignment Score: 76.3% All work saved. Email Instructor Save and Exit Submit Assignment for Grading