Question 11

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Calculate the present value (principal) and the compound interest (in \\$). Use Table 11-2. Round your answers to the nearest cent. \\begin{tabular}{|c|c|c|c|c|c|} \\hline \\( \\begin{array}{c}\\text { Compound } \\\\ \\text { Amount }\\end{array} \\) & \\( \\begin{array}{c}\\text { Term of } \\\\ \\text { Investment }\\end{array} \\) & \\( \\begin{array}{c}\\text { Nominal } \\\\ \\text { Rate (\\%) }\\end{array} \\) & \\( \\begin{array}{c}\\text { Interest } \\\\ \\text { Compounded }\\end{array} \\) & \\( \\begin{array}{c}\\text { Present } \\\\ \\text { Value }\\end{array} \\) & \\( \\begin{array}{c}\\text { Compound } \\\\ \\text { Interest }\\end{array} \\) \\\\ \\hline\\( \\$ 600,000 \\) & 10 years & 4 & annually & \\( \\$ \\) & \\( \\$ \\) \\\\ \\hline \\end{tabular} Solve by using the present value formula. Round your answers (in \\$) to the nearest cent. \\begin{tabular}{|c|c|c|c|c|c|} \\hline \\( \\begin{array}{c}\\text { Compound } \\\\ \\text { Amount }\\end{array} \\) & \\( \\begin{array}{c}\\text { Term of } \\\\ \\text { Investment }\\end{array} \\) & \\( \\begin{array}{c}\\text { Nominal } \\\\ \\text { Rate (\\%) }\\end{array} \\) & \\( \\begin{array}{c}\\text { Interest } \\\\ \\text { Compounded }\\end{array} \\) & \\( \\begin{array}{c}\\text { Present } \\\\ \\text { Value }\\end{array} \\) & \\( \\begin{array}{c}\\text { Compound } \\\\ \\text { Interest }\\end{array} \\) \\\\ \\hline\\( \\$ 17,000 \\) & 8 years & 4.5 & monthly & \\( \\$ \\) & \\( \\$ \\) \\\\ \\hline \\end{tabular} The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table \\( 11-2 \\). Round your new table factor to five decimal places and your present value to the nearest cent. TABLE 11-2 Present Value Table (Present Value of \\( \\$ 1 \\) at Compound Interest)