document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=345188>Question 345188</A>: <I><SPAN STYLE=\"word-break: break-all;\"> To save for their retirement, a couple deposits $4000 in an account that pays 5.9% annual interest compounded quarterly. What will be the value of their investment after 20 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #246876 by </B><A HREF=/tutors/aboutme.mpl?userid=nerdybill><B>nerdybill(7384)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=nerdybill><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=nerdybill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=246876\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> To save for their retirement, a couple deposits $4000 in an account that pays 5.9% annual interest compounded quarterly. What will be the value of their investment after 20 years?<BR>\n" );
document.write( ".<BR>\n" );
document.write( "A = P(1 + r/n)^(nt)<BR>\n" );
document.write( "where<BR>\n" );
document.write( "A is amount after time t<BR>\n" );
document.write( "P is the initial amount<BR>\n" );
document.write( "r is the interest rate<BR>\n" );
document.write( "n is the number of time it is compounded<BR>\n" );
document.write( ".<BR>\n" );
document.write( "Plugging in what is given:<BR>\n" );
document.write( "A = 4000(1 + .059/4)^(4*20)<BR>\n" );
document.write( "A = 4000(1 + .059/4)^80<BR>\n" );
document.write( "A = 4000(1 + 0.01475)^80<BR>\n" );
document.write( "A = 4000(1.01475)^80<BR>\n" );
document.write( "A = 4000(3.226)<BR>\n" );
document.write( "A = $12905.80<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );