document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=188472>Question 188472</A>: <I><SPAN STYLE=\"word-break: break-all;\"> \"Find the difference between the simple interest and the compound interest that would be earned from $1,000 invested for 2 years at 5<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1%2F2 ALIGN=MIDDLE  ALT=\"1%2F2\"   DISABLED_style= \"max-width:90%; height:auto;\" >%.\"\r<BR>\n" );
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document.write( "I asked this question a few days ago, but I dont understand the answer that was given. So if anyone can explain it better that would be great.<BR>\n" );
document.write( "Thank you (and sorry for having to ask it twice)\r<BR>\n" );
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document.write( "Answer given: 1,000(1+.055)^2<BR>\n" );
document.write( "1,000(1.055)^2<BR>\n" );
document.write( "1,000*1.113=$1,113.03 amount of the investment after 2 years.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #141292 by </B><A HREF=/tutors/aboutme.mpl?userid=Mathtut><B>Mathtut(3670)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Mathtut><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=141292\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> normal interest is given by FV=P+Prt or FV=P(1+rt)<BR>\n" );
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document.write( "for compounded interest the formula is FV=P<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Br%29%5Et ALIGN=MIDDLE  ALT=\"%281%2Br%29%5Et\"   DISABLED_style= \"max-width:90%; height:auto;\" > if compounded once a year<BR>\n" );
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document.write( "if compounded more it would be FV=P<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Br%2Fn%29%5Ent ALIGN=MIDDLE  ALT=\"%281%2Br%2Fn%29%5Ent\"   DISABLED_style= \"max-width:90%; height:auto;\" > where n is the number of compounding periods.<BR>\n" );
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document.write( "http://www.moneychimp.com/articles/finworks/fmfutval.htm   here is one page that might help on compounding </SPAN>\n" );
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