SOLUTION: Classify the financial problem. Assume a 11% interest rate compounded annually. Find the value of a $1,000 certificate in 6 years. (Round your answer to the nearest cent.)

Question 756631: Classify the financial problem. Assume a 11% interest rate compounded annually.
Find the value of a $1,000 certificate in 6 years. (Round your answer to the nearest cent.)
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
Classify the financial problem. Assume a 11% interest rate compounded annually.
Find the value of a $1,000 certificate in 6 years. (Round your answer to the nearest cent.)
***
Compound Interest Formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amt after n-periods.
For given problem:
P=1000
i=0.11
n=6
..
A=1000(1+0.11)^6
A=1000(1.11)^6
A=1000*1.87042 (rounded)
A=1870.42
value of a $1,000 certificate in 6 years at 11% interest rate compounded annually=$1872.42
RELATED QUESTIONS
Assume a 12% interest rate compounded annually. Find the value of a $1,000 certificate... (answered by Fombitz)

Mr. Money invested $10,000 in a certificate of deposit (CD) for three years at a rate of... (answered by stanbon)

Please help me solve this problem --you deposit 2000 in a 5 year certificate of deposit... (answered by Alan3354)

1. How long will it take for 74,500 to accumulate to 101,000 if the interest rate is... (answered by ikleyn)

What is the future value of a semi-annual payments of 8,000 pesos for 12 years with... (answered by Theo)

Jim invested $15,000 for a period of 2 years at an interest rate of 4.5% compounded... (answered by ewatrrr)

Find the present value and the future value of semi-annual payments of 105,000 pesos with (answered by Theo)

Find the present value and future value of quarterly payments of 5,000 pesos for 10 years (answered by Shin123,ikleyn)