document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=257689>Question 257689</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $25,000 in an account to accrue interest for 40 years. the account pays 4% compunded anually. Assume that the income tax on the earned interest is 30%. Which of the following plans produces a larger balance after all income tax is paid? <BR>\n" );
document.write( "(A) the income tax on the interest that is earned is paid in one lump sum at the end of 40 years.<BR>\n" );
document.write( "or<BR>\n" );
document.write( "(B)The income tax on the interest that is earned each year is paid at the end of each year.\r<BR>\n" );
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document.write( "i know i am supposed to use the A=P(1+r/n)^nt equation, but im not sure where to put the information.\r<BR>\n" );
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document.write( "please help. 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 #189629 by </B><A HREF=/tutors/aboutme.mpl?userid=rfer><B>rfer(16322)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rfer><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=189629\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A= future value<BR>\n" );
document.write( "P=present value<BR>\n" );
document.write( "r=interest rate<BR>\n" );
document.write( "n= number of compounding periods per year<BR>\n" );
document.write( "t=number of years<BR>\n" );
document.write( "Does that help? </SPAN>\n" );
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