document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=4186>Question 4186</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Okay. I know I asked this already, and I thank you longjohnsilver for your post; but quite frankly, that makes no sense. I need some kind of basic formula for annual interest. I remember learning it, but can't recall it all.\r<BR>\n" );
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document.write( "A BOND PAYS 12% ANNUAL INTEREST COMPOUNDED CONTINUOUSLY. IF $10,000 IS INVESTED INITIALLY, WHEN WILL THE BOND BE WORTH $30,000? ROUND TO NEAREST YEAR. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #1866 by </B><A HREF=/tutors/aboutme.mpl?userid=longjonsilver><B>longjonsilver(2297)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=longjonsilver><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=longjonsilver><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=1866\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> OK, try this:\r<BR>\n" );
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document.write( "start with 10000.<BR>\n" );
document.write( "After 1 year you have 10000*1.12 = whatever.<BR>\n" );
document.write( "After another year, you have whatever*1.12 = something.<BR>\n" );
document.write( "After a third year, you have something*1.12 = value<BR>\n" );
document.write( "After a fourth year, you have a value*1.12 = figure <BR>\n" );
document.write( "etc etc.\r<BR>\n" );
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document.write( "Work that out until you reach 30,000. It will be 10 years.\r<BR>\n" );
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document.write( "Mathematically, what we have is:\r<BR>\n" );
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document.write( "after year 1: 10000*1.12<BR>\n" );
document.write( "after year 2: 10000*1.12*1.12<BR>\n" );
document.write( "after year 3: 10000*1.12*1.12*1.12<BR>\n" );
document.write( "after year 4: 10000*1.12*1.12*1.12*1.12<BR>\n" );
document.write( "after year 5: 10000*1.12*1.12*1.12*1.12*1.12<BR>\n" );
document.write( "etc\r<BR>\n" );
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document.write( "which can be written as:\r<BR>\n" );
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document.write( "after 1 year : 10000*1.12^1<BR>\n" );
document.write( "after 2 years: 10000*1.12^2<BR>\n" );
document.write( "after 3 years: 10000*1.12^3<BR>\n" );
document.write( "after 4 years: 10000*1.12^4<BR>\n" );
document.write( "after 5 years: 10000*1.12^5\r<BR>\n" );
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document.write( "... after n years: 10000*1.12^n and this has to be 30000. So:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10000%2A1.12%5En+=+30000 ALIGN=MIDDLE  ALT=\"10000%2A1.12%5En+=+30000\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.12%5En+=+3 ALIGN=MIDDLE  ALT=\"1.12%5En+=+3\"   DISABLED_style= \"max-width:90%; height:auto;\" >. Taking logs:\r<BR>\n" );
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document.write( "nlog1.12 = log3<BR>\n" );
document.write( "n=log3/log1.12<BR>\n" );
document.write( "n=9.694\r<BR>\n" );
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document.write( "so n=10 years\r<BR>\n" );
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document.write( "jon<BR>\n" );
document.write( " </SPAN>\n" );
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