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
$5,500	5	8	quarterly	$  	$

To calculate the compound amount and compound interest for an investment, we can use the compound interest formula:

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

Where:
- $ A $ = compound amount (final amount)
- $ P $ = principal (initial investment)
- $ r $ = nominal interest rate (as a decimal)
- $ t $ = time period (in years)
- $ n $ = number of times the interest is compounded per year

Given:
- Principal $ P = 5,500 $
- Time $ t = 5 $ years
- Nominal Rate $ r = 8\% = 0.08 $
- Compounded quarterly $ n = 4 $ (since interest is compounded quarterly)

Now, let's calculate the compound amount and the compound interest.

First, we calculate the compound amount $ A $:

\[
A = 5,500 \left(1 + \frac{0.08}{4}\right)^{4 \times 5}
\]

Let me calculate that:The compound amount after 5 years is **$8,172.71**, and the compound interest earned is **$2,672.71**.

Would you like any additional details or explanations?

Here are 5 related questions for further exploration:
1. How would the result change if the interest were compounded monthly instead of quarterly?
2. What would happen if the investment period was extended to 10 years?
3. How does increasing the nominal rate to 10% affect the compound amount?
4. What is the formula for continuous compounding, and how does it compare to quarterly compounding?
5. How can you calculate the present value given a future value and interest rate?

**Tip:** The more frequently interest is compounded, the higher the compound amount 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: $5,500, Time Period: 5 years, Nominal Rate: 8%, Interest Compounded Quarterly.

Learn how to calculate compound interest for a $5,500 investment over 5 years with an 8% nominal rate, compounded quarterly. The solution includes step-by-step calculations of the compound amount and the interest earned using the compound interest formula. Suitable for Grades 10-12 finance or math students.

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