document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=35041>Question 35041</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Compound Interest.  I know the formula and have my teacher's answer to this quesion but<BR>\n" );
document.write( "cannot get from one to the other.  Frustration has reached its peak!<BR>\n" );
document.write( "Here's the problem with the answer:<BR>\n" );
document.write( "If you invest $500 at an annual rate of 10% compounded quarterly for 20 years, you will earn $3,104.78 in interest and have a total of $3,604.78.\r<BR>\n" );
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document.write( "The formula (as I understand it to be):  A=p(1+r/n)(nt)  or A=500(1+.1/4)4(20) or A=500(1.025)80 or<BR>\n" );
document.write( "(please stick with what I'm thinking and tell me what is wrong...) or A=500 times 1.025 times 80<BR>\n" );
document.write( "or (after I multiply those three figures together) A=410,000   - obviously not the $3,104.78 in <BR>\n" );
document.write( "interest as figured by my teacher.  I'm not a total dummy, but this I cannot figure out.  Any help would be GREATLY appreciated!  Thank you in advance (and again later). </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #21247 by </B><A HREF=/tutors/aboutme.mpl?userid=hydromojo><B>hydromojo(20)</B></A><img src=\"/images/stars/stars-06.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=hydromojo><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=21247\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Hello,<BR>\n" );
document.write( "Seems you are right in your step-by-step methodology. Just one small problem.\r<BR>\n" );
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document.write( "here is the formula for the total amount at the end of the period, interest compounded\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+Amount+=+Principal%281%2Br%2Fn%29%5E%28nt%29+ ALIGN=MIDDLE  ALT=\"+Amount+=+Principal%281%2Br%2Fn%29%5E%28nt%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "so,<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+Amount+=+500%281%2B.1%2F4%29%5E%284%2A20%29+ ALIGN=MIDDLE  ALT=\"+Amount+=+500%281%2B.1%2F4%29%5E%284%2A20%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "solve, and you get Amount = $3,604.78 :-))\r<BR>\n" );
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document.write( "Looks like the last (nt) term you had was multiplied, not raised to the power. That was the problem </SPAN>\n" );
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