document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=488896>Question 488896</A>: <I><SPAN STYLE=\"word-break: break-all;\"> what is the interest if the Principal is $720, the Rate is 5 1/4% and the Time is 3 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #333472 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=333472\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> if the interest is compounded monthly (normal bank practice), then $720.00 would be equal to $847.2093772in 3 years.\r<BR>\n" );
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document.write( "if the interest is compounded  annually, then $720.00 would be equal to $844.1213401 in 3 years.\r<BR>\n" );
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document.write( "if the interest was compounded daily, then $720.00 would be equal to $847.4908701 in 3 years.\r<BR>\n" );
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document.write( "if the interest was compounded continuously, then $720.00 would be equal to $847.50\r<BR>\n" );
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document.write( "continuous compounding is given by the formula:\r<BR>\n" );
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document.write( "F = P * e^(i*y)\r<BR>\n" );
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document.write( "annual, monthly, daily compounding is given by the formula:\r<BR>\n" );
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document.write( "F = P * (1+(i/c)^(y*c)\r<BR>\n" );
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document.write( "P is the present amount<BR>\n" );
document.write( "F is the future amount<BR>\n" );
document.write( "i is the annual interest rate<BR>\n" );
document.write( "y is the number of year<BR>\n" );
document.write( "c is the compounding period.<BR>\n" );
document.write( "e is the scientific constant of 2.718281828\r<BR>\n" );
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document.write( "example:\r<BR>\n" );
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document.write( "for monthly compounding, the variables become:\r<BR>\n" );
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document.write( "P = $725.00<BR>\n" );
document.write( "F = F<BR>\n" );
document.write( "i = .0525<BR>\n" );
document.write( "y = 3<BR>\n" );
document.write( "c = 12\r<BR>\n" );
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document.write( "the formula of F = P * (1+(i/c))^(y*c) becomes:\r<BR>\n" );
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document.write( "F = $724.00 * (1 + (.0525/12))^(*3*12) which becomes:\r<BR>\n" );
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document.write( "F = $724.00 * (1.004375)^36 which becomes:\r<BR>\n" );
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document.write( "F = $847.2093772<BR>\n" );
document.write( " </SPAN>\n" );
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