document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=498947>Question 498947</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A principal of $6500 is invested in an account paying an annual rate of 6%. Find the amount in the account after 6 years if the account compounded semiannually, quarterly, and monthly. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #337353 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=337353\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> your equation is:<BR>\n" );
document.write( "f = p * (1 + (i/c))^(n*c)<BR>\n" );
document.write( "f = future value<BR>\n" );
document.write( "p = present value<BR>\n" );
document.write( "i = annual interest rate<BR>\n" );
document.write( "c = number of compound intervals per year<BR>\n" );
document.write( "n = number of years.\r<BR>\n" );
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document.write( "your principal is 6500.<BR>\n" );
document.write( "your annual interest rate is 6%<BR>\n" );
document.write( "you want to find the amount in the account after 6 years.<BR>\n" );
document.write( "money is compounded semi-annually, quarterly, and monthly.\r<BR>\n" );
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document.write( "money is compounded semi-annually:<BR>\n" );
document.write( "p = 6500<BR>\n" );
document.write( "i = .06 (annual interest rate percent divided by 100%).<BR>\n" );
document.write( "n = 6<BR>\n" );
document.write( "c = 2<BR>\n" );
document.write( "i/c = .06/2 = .03<BR>\n" );
document.write( "n*c = 6*2 = 12<BR>\n" );
document.write( "formula becomes:<BR>\n" );
document.write( "f = 6500 * (1.03)^12 = 9267.45\r<BR>\n" );
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document.write( "money is compounded quarterly:<BR>\n" );
document.write( "p = 6500<BR>\n" );
document.write( "i = .06 (annual interest rate percent divided by 100%).<BR>\n" );
document.write( "n = 6<BR>\n" );
document.write( "c = 4<BR>\n" );
document.write( "i/c = .06/4 = .015<BR>\n" );
document.write( "n*c = 6*4 = 24<BR>\n" );
document.write( "formula becomes:<BR>\n" );
document.write( "f = 6500 * (1.015)^24 = 9291.77\r<BR>\n" );
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document.write( "money is compounded monthly:<BR>\n" );
document.write( "p = 6500<BR>\n" );
document.write( "i = .06 (annual interest rate percent divided by 100%).<BR>\n" );
document.write( "n = 6<BR>\n" );
document.write( "c = 12<BR>\n" );
document.write( "i/c = .06/12 = .005<BR>\n" );
document.write( "n*c = 6*12 = 72<BR>\n" );
document.write( "formula becomes:<BR>\n" );
document.write( "f = 6500 * (1.005)^72 = 9308.28781\r<BR>\n" );
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document.write( "the more compounding intervals per year, the more money you make.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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