document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=202203>Question 202203</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hi can someone please help me solve for this, and or let me know if I'm on the right track? It is from the Financial Management: Principles and Applications text by Keown Chapter 5, question 5-1A:\r<BR>\n" );
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document.write( "(Compound interest) To what amount will the following investments accumulate?\r<BR>\n" );
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document.write( "a. $5,000 invested for 10 years at 10 percent compounded annually\r<BR>\n" );
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document.write( "Answer: 889,527.07\r<BR>\n" );
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document.write( "b. $8,000 invested for 7 years at 8 percent compounded annually<BR>\n" );
document.write( "c. $775 invested for 12 years at 12 percent compounded annually<BR>\n" );
document.write( "d. $21,000 invested for 5 years at 5 percent compounded annually\r<BR>\n" );
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document.write( "Is the answer I have for a.) correct? If not can you please explain what I did wrong and how I would do the other ones?\r<BR>\n" );
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document.write( "Thank you </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #152469 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><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=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=152469\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Garamond\" size=\"+2\">\r<BR>\n" );
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document.write( "You need the following formula:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV = P\cdot(1 + r)^n\">\r<BR>\n" );
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document.write( "Where <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large FV\"> is the future value, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large P\"> is the beginning principal, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large r\"> is the annual interest rate (expressed as a <b><i>decimal</i></b>), and <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large n\"> is the number of years.\r<BR>\n" );
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document.write( "So, for your first problem:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV = 5000\cdot(1 + 0.10)^{10}\">\r<BR>\n" );
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document.write( "Start punching buttons on your calculator.\r<BR>\n" );
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document.write( "By the way, the answer you did give for #1 is WAY out in outer space somewhere.  I tried but I can't figure out how you got there.  Suffice it to say that to turn $5K into $890K in 10 years you would need to be earning something like 68% interest.\r<BR>\n" );
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document.write( "You can use the same formula for the other three problems.\r<BR>\n" );
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document.write( "The general formula for interest compounded at other periodicities is:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV = P\cdot(1 + \frac{r}{n})^{nt}\">\r<BR>\n" );
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document.write( "Where <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large FV\"> is the future value, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large P\"> is the beginning principal, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large r\"> is the annual interest rate, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large n\"> is the number of compounding periods per year and <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large t\"> is the number of years.\r<BR>\n" );
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document.write( "Or, for continuous compounding:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV = Pe^{rt}\">\r<BR>\n" );
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document.write( "Where <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large FV\"> is the future value, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large P\"> is the beginning principal, <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large e\"> is the base of the natural logarithms (<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large \approx 2.718\">), <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large r\"> is the annual interest rate, and <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large t\"> is the number of years.\r<BR>\n" );
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document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi} + 1 = 0\"><BR>\n" );
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