document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=251431>Question 251431</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1.A certain bank pays 1% compound interest for their savings account holders. If Nick deposits $10000 in that bank. (refer page 707 in the text book) (40 points) Formula =  A= P (1 + r)^t\r<BR>\n" );
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document.write( "a.	Estimate how much money will be in his account after 25 years using your formula. Assume there will not be any deposits or withdrawals during that 25 year period.\r<BR>\n" );
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document.write( "b.	Estimate how long it will take to double the total amount (i. e. the total is $20000) in Nick’s account.<BR>\n" );
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document.write( " c.Estimate the total amount in Nick’s account after one year.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #183120 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=183120\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A certain bank pays 1% compound interest for their savings account holders. If Nick deposits $10000 in that bank. (refer page 707 in the text book) (40 points) Formula = A= P (1 + r)^t <BR>\n" );
document.write( "a. Estimate how much money will be in his account after 25 years using your formula. Assume there will not be any deposits or withdrawals during that 25 year period.<BR>\n" );
document.write( "A(25) = 10,000(1+0.01)^25<BR>\n" );
document.write( "A(25) = 10,000(1.01)^25<BR>\n" );
document.write( "A(25) = 10,000*1.2824<BR>\n" );
document.write( "A(25) = 12,824.00<BR>\n" );
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document.write( "b. Estimate how long it will take to double the total amount (i. e. the total is $20000) in Nick’s account.<BR>\n" );
document.write( "20,000 = 10,000(1.01)^t<BR>\n" );
document.write( "2 = 1.01^t<BR>\n" );
document.write( "t*log(1.01) = log(2)<BR>\n" );
document.write( "t = log(2)/log(1.01)<BR>\n" );
document.write( "t = 69.66 years<BR>\n" );
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document.write( "c.Estimate the total amount in Nick’s account after one year.<BR>\n" );
document.write( "A(1) = 10,000(1.01)^1<BR>\n" );
document.write( "A(1) = 10,100<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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