document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=140939>Question 140939</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Which do you think pays more: 4.25% simple interest for 3 years or 4% interest compounded semi-annually for the same amount of time? Explain.\r<BR>\n" );
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document.write( "Please help with this question because this is so confusing!!!!!!!!!!!! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #102631 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=102631\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Which do you think pays more: 4.25% simple interest for 3 years or 4% interest compounded semi-annually for the same amount of time?<BR>\n" );
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document.write( "Simple Interest Equation:<BR>\n" );
document.write( "A(t) = P(1+rt)<BR>\n" );
document.write( "A(3) = P(1+0.0425*3) = 1.1275P<BR>\n" );
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document.write( "Compounded semi-annually Equation:<BR>\n" );
document.write( "A(t) = P(1 + (r/n))^(nt)<BR>\n" );
document.write( "A(3) = P(1 + (0.0425/2))^(2*3)<BR>\n" );
document.write( "A(3) = P(1.02125)^6<BR>\n" );
document.write( "A(3) = P(1.134468...<BR>\n" );
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document.write( "Compounding semi-annually gives a greater outcome.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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