document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=383497>Question 383497</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A savings bond will pay $5,000 at maturity 15 years from now. How much should you be willing to pay for<BR>\n" );
document.write( "the note now if money is worth 4.11% compounded semiannually? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #271535 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=271535\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> will pay $5000 in 15 years.<BR>\n" );
document.write( "interest rate per year is 4.11% compounded semiannual.\r<BR>\n" );
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document.write( "formula to use is f = p * (1+i)^n\r<BR>\n" );
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document.write( "your time periods need to be semi-years.\r<BR>\n" );
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document.write( "because of that, you need to divide your interest rate by 2 and you need to multiply your  years by 2.\r<BR>\n" );
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document.write( "in your formula:\r<BR>\n" );
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document.write( "f = 5000<BR>\n" );
document.write( "p = what you want to find<BR>\n" );
document.write( "i = .0411 / 2 = .02055<BR>\n" );
document.write( "n = 15 * 2 = 30\r<BR>\n" );
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document.write( "your formula becomes:\r<BR>\n" );
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document.write( "5000 = p * (1.02055)^30\r<BR>\n" );
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document.write( "your answer should be that you are willing to pay $2,716.072716 for the savings bond.\r<BR>\n" );
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document.write( "Let's see if that works.\r<BR>\n" );
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document.write( "1.02055^30 = 1.840893276\r<BR>\n" );
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document.write( "your formula becomes 5000 = p * 1.840893276\r<BR>\n" );
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document.write( "divide both sides of this equation by 1.840893276 and you get:\r<BR>\n" );
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document.write( "p = 5000 / 1.840893276 = $2,716.072716\r<BR>\n" );
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document.write( "We're good.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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