document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=396377>Question 396377</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jeanne Marie said there is no difference between an 8% annual interest rte compounded quarterly and an 8% annual interest rate Explain to Jeanne Marie the error of her ways using examples and a clear explanation </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #281193 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=281193\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Jeanne Marie said there is no difference between an 8% annual interest rate compounded quarterly and an 8% annual interest rate.<BR>\n" );
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document.write( "Explain to Jeanne Marie the error of her ways using examples and a clear explanation<BR>\n" );
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document.write( "Growth in value in 10 years of $1 if invested at 8% compounded quarterly\r<BR>\n" );
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document.write( "A(1) = 1(1+(0.08/4))^(4*10)<BR>\n" );
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document.write( "= (1+0.02)^40<BR>\n" );
document.write( "= $2.2080..\r<BR>\n" );
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document.write( "Growth in value in 10 years of $1 if invested at 8% annual rate<BR>\n" );
document.write( "= 1 + 0.08*10<BR>\n" );
document.write( "= $1.80<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. <BR>\n" );
document.write( " </SPAN>\n" );
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