Use Table 13 1 Appropriate formula for Exercise 11 16 See Examples 3 and 4 for table or Examples 5 through 7 for formulas You have $8,000 that you plan to invest in a compound interest bearing instrument Your investment agent advises you that you can invest the $8,000 at 8 compounded quarterly for ...

8 quarterly 12 periods at 2 per period Tab ...

Use Table 13 - 1 Appropriate formula for Exercise 11 - 16. See Examples 3 and 4

Question:

Use Table 13 - 1 Appropriate formula for Exercise 11 - 16. See Examples 3 and 4 for table or Examples 5 through 7 for formulas.
You have $8,000 that you plan to invest in a bearing instrument. Your investment agent advises you that you can invest the $8,000 at 8% compounded quarterly for three years or you can invest the $8,000 at 8 ¼% compounded annually for three years. Which investment should you choose to receive the most interest? See Example 8.
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...