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Narrative 11-2 Solve the Following Problems Using Either Tables 11-1 or 11-2

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Narrative 11-2
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent)
-Refer to Narrative in your text 11-2. Norma Gatling needs $180,000 in 12 years.
A)What is the amount of compound interest she will earn in 12 years on the present value of an investment made today if the interest rate is 10% compounded annually?
B)How much more compound interest would Norma have earned if the interest rate were
10% compounded semiannually?


Definitions:

Cost of Goods Sold

The immediate expenses related to the creation of products sold by a business, which include costs for materials and labor.

Merchandising Firm

A business that purchases goods and resells them at a profit without changing their basic form.

Manufacturing Firm

A business engaged in the industrial production of goods from raw materials through the use of labor and machinery.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

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