document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=26526>Question 26526</A>: <I><SPAN STYLE=\"word-break: break-all;\">  A person has $1500.00 to invest for 1 year. He has a choice of a credit union account that pays 4.5% annual simple interest and a bank account that pays 4% interest compounded quarterly. Detemine which account would pay more interest and by how much? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #14399 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=14399\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Simple interest Formula: Interest=Prt=1500*0.045(1)=$67.50<BR>\n" );
document.write( "Compound interest Formula: Interest =P((1+r/n)^(nt) -1}<BR>\n" );
document.write( "Interest=1500[(1+0.045/4)^4 -1]<BR>\n" );
document.write( "=1500[(1.01125)^4 - 1]<BR>\n" );
document.write( "=1500[0.045765...]<BR>\n" );
document.write( "=$68.65<BR>\n" );
document.write( "68.65-67.50=$1.15<BR>\n" );
document.write( "Compound interest is better by $1.15 the first year.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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