document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=204084>Question 204084</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me with this problem:\r<BR>\n" );
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document.write( "Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.\r<BR>\n" );
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document.write( "R = $2500, i = 7%; interest compounded quarterly for 16 years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #154021 by </B><A HREF=/tutors/aboutme.mpl?userid=feliz1965><B>feliz1965(151)</B></A><img src=\"/images/stars/stars-09.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=feliz1965><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=154021\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> We need the formula:\r<BR>\n" );
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document.write( "A = P(1 + r/n)^(nt)\r<BR>\n" );
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document.write( "P = principal amount (initial investment) <BR>\n" );
document.write( "r = annual nominal interest rate (as a decimal) <BR>\n" );
document.write( "n = number of times the interest is compounded per year <BR>\n" );
document.write( "t = number of years <BR>\n" );
document.write( "A = amount after time t in years \r<BR>\n" );
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document.write( "Let R = P\r<BR>\n" );
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document.write( "Let i = r\r<BR>\n" );
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document.write( "Let n = 4 for quarterly\r<BR>\n" );
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document.write( "Let t = 16 years\r<BR>\n" );
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document.write( "We are looking for A.\r<BR>\n" );
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document.write( "A = 2500(1 + 0.07/4)^(4)(16 years)\r<BR>\n" );
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document.write( "A = $7588.27 </SPAN>\n" );
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