document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=42323>Question 42323</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A company will need $30,000.00 in 8 years for a new addition. To meet this goal,the company deposits money in an account today that pays 8% annual interest compounded quarterly. Find the amount that should be invested to total $30,000.00 in 8 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #27487 by </B><A HREF=/tutors/aboutme.mpl?userid=psbhowmick><B>psbhowmick(878)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=psbhowmick><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=psbhowmick><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=27487\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The general formula is<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%2A%281+%2B+I%2F100%29%5Et ALIGN=MIDDLE  ALT=\"A+=+P%2A%281+%2B+I%2F100%29%5Et\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "where P = principal that becomes amount = A in 't' years at the rate I% compound interest per annum.\r<BR>\n" );
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document.write( "Here I is 8% per annum (12 months).<BR>\n" );
document.write( "So I is 2% per quarter (3 months).<BR>\n" );
document.write( "So time 't' will also be in quarters.\r<BR>\n" );
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document.write( "Put A = 30,000, I = 2 and t = 32 (since 32 quarters in 8 years) in the formula.<BR>\n" );
document.write( "You get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=30000+=+P%2A%281%2B2%2F100%29%5E32 ALIGN=MIDDLE  ALT=\"30000+=+P%2A%281%2B2%2F100%29%5E32\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "or <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+=+30000%2F%281.02%29%5E32 ALIGN=MIDDLE  ALT=\"P+=+30000%2F%281.02%29%5E32\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "= <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=30000%2F1.88454 ALIGN=MIDDLE  ALT=\"30000%2F1.88454\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "= 15919 (approx)\r<BR>\n" );
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document.write( "Thus the $15919 will amount to $30,000 in 8 years at 8% rate compounded quarterly.\r<BR>\n" );
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document.write( "For checking the correctness answer you may visit this site\r<BR>\n" );
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document.write( "http://id.mind.net/~zona/mmts/functionInstitute/exponentialFunctions/compoundInterest.html </SPAN>\n" );
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