document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=248957>Question 248957</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I need someone to tell me where \"m\" come from?\r<BR>\n" );
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document.write( "If $1,000 is invested in an account paying 10% compounded monthly, how much will be in the account at the end of 10years? compute the answer to the nearist cent.\r<BR>\n" );
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document.write( "Compound interest formula:<BR>\n" );
document.write( "A=P(1+(r/m))^(mt)\r<BR>\n" );
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document.write( "P=1,000<BR>\n" );
document.write( "r=0.1<BR>\n" );
document.write( "m=12<BR>\n" );
document.write( "t=10\r<BR>\n" );
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document.write( "A=1,000(1+(0.10/12)^((12)(10))<BR>\n" );
document.write( "A=$2,707.04 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #181384 by </B><A HREF=/tutors/aboutme.mpl?userid=kensson><B>kensson(21)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=kensson><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=kensson><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=181384\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The m is the number of periods the year is split into - here, it's 12 because the interest is compounded monthly. If it was daily, m would be 365. </SPAN>\n" );
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