Use the Table to Solve the Problem

question 22

Multiple Choice

Use the table to solve the problem. Round to the nearest cent.
-Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find the compound amounts if she invests for 4 years and for 8 years. Then find the additional amount earned due to the longer period.

• A)$45,675.29
• B)$14,627.89
• C)$5,762.59
• D)$20,390.48

---

Definitions:

Acquisition Transaction

An agreement in which one company purchases most or all of another company's shares to gain control of that company.

Fair Value

The asset's selling rate or the price required to manage a liability in a procedural transaction between participants in the market during the specified measurement interval.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and dividend receiving potential.

Par Value

The face value of a bond or stock as stated by the issuing company, which is not indicative of its market value.