Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.)
Principal	Time
Period (years)	Nominal
Rate (%)	Interest
Compounded	Compound
Amount	Compound
Interest
$21,000	10	5	annually	$  	$

To calculate the compound amount and compound interest, we will use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $ A $ is the compound amount (future value),
- $ P $ is the principal amount (initial investment),
- $ r $ is the nominal annual interest rate (in decimal form),
- $ n $ is the number of times the interest is compounded per year,
- $ t $ is the time the money is invested or borrowed for, in years.

Given:
- $ P = 21,000 $ dollars (principal),
- $ t = 10 $ years,
- $ r = 5\% = 0.05 $,
- $ n = 1 $ (since the interest is compounded annually).

### Step 1: Calculate the compound amount $ A $
We will use the formula to find $ A $.

\[
A = 21,000 \left(1 + \frac{0.05}{1}\right)^{1 \times 10}
\]

Now, let's calculate this.The compound amount (future value) is approximately \$34,206.79.

### Step 2: Calculate the compound interest
The compound interest is simply the difference between the compound amount and the principal.

\[
\text{Compound Interest} = A - P = 34,206.79 - 21,000
\]The compound interest is approximately \$13,206.79.

### Summary:
- **Compound Amount (A):** \$34,206.79
- **Compound Interest:** \$13,206.79

Do you want more details or have any questions?

Here are 5 related questions to explore:
1. How does the number of compounding periods affect the total compound interest?
2. What would happen if the interest rate was 6% instead of 5%?
3. How does compound interest differ from simple interest over the same period?
4. What is the formula for continuously compounded interest?
5. How does inflation impact the future value of investments?

**Tip:** The more frequently interest is compounded, the higher the compound interest will be.

Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.)
Principal: $21,000
Time Period (years): 10
Nominal Rate (%): 5
Interest Compounded: annually

Learn how to calculate the compound amount and compound interest for an investment of $21,000 over 10 years at a nominal rate of 5%, compounded annually. This step-by-step guide explains the compound interest formula and provides detailed calculations, rounding to the nearest cent.

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