document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=34711>Question 34711</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The problem is a word problem it goes like this...\r<BR>\n" );
document.write( "\n" );
document.write( "You invest 2,000 dollars at an annual interest rate of 5% for 3 years.<BR>\n" );
document.write( "Find the amount for each account...\r<BR>\n" );
document.write( "\n" );
document.write( "Compounded daily = ?\r<BR>\n" );
document.write( "\n" );
document.write( "Compounded monthly = ?\r<BR>\n" );
document.write( "\n" );
document.write( "Compounded continuously = ?\r<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #20965 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=20965\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Value = (amount at the beginning)(1+r/n)^(nt)<BR>\n" );
document.write( "r is the yearly rate of interest<BR>\n" );
document.write( "n is the number of times in a year the money is compounded<BR>\n" );
document.write( "t is the number of years this compounding goes on\r<BR>\n" );
document.write( "\n" );
document.write( "A=2000(1+0.05/365)^(365*3)<BR>\n" );
document.write( "A=2000(1.000136986...)^1095<BR>\n" );
document.write( "A=$2323.64 (value after 3 yrs. compounded daily at 5% per annum)\r<BR>\n" );
document.write( "\n" );
document.write( "I'll let you do the monthly where n=12\r<BR>\n" );
document.write( "\n" );
document.write( "For \"continuous\" compounding the formula changes to:<BR>\n" );
document.write( "V = Amount* e^(rt)<BR>\n" );
document.write( "V = 2000 e^(0.05*3)<BR>\n" );
document.write( "V= 2000(1.161834...<BR>\n" );
document.write( "v=$2323.67<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
document.write( "\n" );
document.write( "V </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );