document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=470885>Question 470885</A>: <I><SPAN STYLE=\"word-break: break-all;\"> if inflation is 2 percent a year compounded annually what would it cost in 13 years  to buy a house currently valued at 75000.00. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #323030 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><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=323030\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> if inflation is 2 percent a year compounded annually what would it cost in 13 years to buy a house currently valued at 75000.00.<BR>\n" );
document.write( "**<BR>\n" );
document.write( "The formula to use: A=P(1+i)^n, A=amount after n periods, P=initial investment, i=interest per period, n=number of periods. This is callled the compound interest formula.<BR>\n" );
document.write( "For given problem: A=to be determined, P=75000, i=.02, n=13<BR>\n" );
document.write( "A=75000(1+.02)^13<BR>\n" );
document.write( "A=75000(1.02)^13<BR>\n" );
document.write( "A=97020<BR>\n" );
document.write( "ans:<BR>\n" );
document.write( "In 13 years it would cost $97020.50 to buy a house currently valued at $75000.00. </SPAN>\n" );
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