document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=201735>Question 201735</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If $8,000.00 is deposited in a bank that compounds interest anually at 5%, then what is the interest paid at the end of the second year? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #151959 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=151959\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If $8,000.00 is deposited in a bank that compounds interest anually at 5%, then what is the interest paid at the end of the second year?\r<BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
document.write( "A(2) = 8000(1+(0.05)/2))^(1*2)<BR>\n" );
document.write( "A(2) = 8000(1+0.025)^2<BR>\n" );
document.write( "A(2) = $8405.00<BR>\n" );
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document.write( "Amount of interest earned is $405.00<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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