document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=363931>Question 363931</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Directions: \r<BR>\n" );
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document.write( "Use the compound interest formulas  A=P(1+r/n )^nt and A=pe^rt to solve.<BR>\n" );
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document.write( "Find the accumulated value of an investment of $850 at 4% compounded annually for 17 years.\r<BR>\n" );
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document.write( "Can someone show me what steps I need to use to find the answer? \r<BR>\n" );
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document.write( "Thanks!  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #259574 by </B><A HREF=/tutors/aboutme.mpl?userid=jrfrunner><B>jrfrunner(365)</B></A><img src=\"/images/stars/stars-10.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jrfrunner><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=jrfrunner><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=259574\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Both of these formulas are for computed compounded interest.  <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=P%281%2Br%2Fn+%29%5Ent+ ALIGN=MIDDLE  ALT=\"A=P%281%2Br%2Fn+%29%5Ent+\"   DISABLED_style= \"max-width:90%; height:auto;\" > will approach the formula <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=pe%5Ert ALIGN=MIDDLE  ALT=\"A=pe%5Ert\"   DISABLED_style= \"max-width:90%; height:auto;\" > in the limit as n approaches infintity.  In other words limit as n-->infinity <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281%2Br%2Fn+%29%5En+=e%5Er ALIGN=MIDDLE  ALT=\"%281%2Br%2Fn+%29%5En+=e%5Er\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
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document.write( "n = number of periods to compound, P is the principal invested, r=annual rate and t=number of years.  <BR>\n" );
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document.write( "In your case n=1 since you are compounding once a year and therefore you need to use the formula <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=P%281%2Br%2Fn+%29%5Ent+ ALIGN=MIDDLE  ALT=\"A=P%281%2Br%2Fn+%29%5Ent+\"   DISABLED_style= \"max-width:90%; height:auto;\" >.   The other formula would only be valid if you were compounding over very granular periods (ie days or hours) or n is very large.<BR>\n" );
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document.write( "given<BR>\n" );
document.write( "n=1 compounded annually, p=850, r=4% or 0.04 and t=17<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=P%281%2Br%2Fn+%29%5E%28nt%29+ ALIGN=MIDDLE  ALT=\"A=P%281%2Br%2Fn+%29%5E%28nt%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" >=<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=850%2A%281%2B%28.04%2F1%29%29%5E%281%2A17%29=850%2A%281.04%29%5E17=1655.72+++ ALIGN=MIDDLE  ALT=\"850%2A%281%2B%28.04%2F1%29%29%5E%281%2A17%29=850%2A%281.04%29%5E17=1655.72+++\"   DISABLED_style= \"max-width:90%; height:auto;\" > </SPAN>\n" );
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