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" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
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 #102632 by </B><A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><B>ankor@dixie-net.com(22740)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><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/cgi-bin/show-face.mpl?user=ankor@dixie-net.com><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=102632\">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? Explain.<BR>\n" );
document.write( ":<BR>\n" );
document.write( "Here is the compound interest formula: A = P*<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Br%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"%281%2Br%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where<BR>\n" );
document.write( "P = principal amt<BR>\n" );
document.write( "A = resulting amt<BR>\n" );
document.write( "r = interest rate (decimal)<BR>\n" );
document.write( "t = time in years<BR>\n" );
document.write( "n = no. of periods per year<BR>\n" );
document.write( ":<BR>\n" );
document.write( "We only need to use the multiplier which is: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Br%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"%281%2Br%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( ":<BR>\n" );
document.write( "For 4.25 % simple interest (compounded once a yr) for 3 yrs<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2B.0425%2F1%29%5E%281%2A3%29 ALIGN=MIDDLE  ALT=\"%281%2B.0425%2F1%29%5E%281%2A3%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > =  <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281.0425%29%5E3 ALIGN=MIDDLE  ALT=\"%281.0425%29%5E3\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 1.139955<BR>\n" );
document.write( ":<BR>\n" );
document.write( "For 4% compounded twice a year, for 3 yrs<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2B4%2F2%29%5E%282%2A3%29 ALIGN=MIDDLE  ALT=\"%281%2B4%2F2%29%5E%282%2A3%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281.02%29%5E6 ALIGN=MIDDLE  ALT=\"%281.02%29%5E6\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 1.126162<BR>\n" );
document.write( ":<BR>\n" );
document.write( "The one with the highest multiplier pays more. (4.25%)<BR>\n" );
document.write( ":<BR>\n" );
document.write( "Did this help you understand this? </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );