document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=507519>Question 507519</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A young man is the beneficiary of a trust fund established for him 16 yr ago at his birth. If the original amount placed in trust was $40,000, how much will he receive if the money has earned interest at the rate of 9%/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.)<BR>\n" );
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document.write( "compounded annually  ?\r<BR>\n" );
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document.write( "compounded quarterly  ?\r<BR>\n" );
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document.write( "compounded monthly   ?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #340520 by </B><A HREF=/tutors/aboutme.mpl?userid=Earlsdon><B>Earlsdon(6294)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Earlsdon><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=340520\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You can use the compound interest formula to get your answers:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281%2Bi%2Fq%29%5Enq ALIGN=MIDDLE  ALT=\"A+=+P%281%2Bi%2Fq%29%5Enq\"   DISABLED_style= \"max-width:90%; height:auto;\" > <BR>\n" );
document.write( "A = The present amount (your answer).<BR>\n" );
document.write( "P = the principal amount invested (P = $40,000).<BR>\n" );
document.write( "i = the rate of interest, expressed as a decimal (i = 0.09).<BR>\n" );
document.write( "q = The number of compounding periods per year (q = 1 for annually, 4 for quarterly, and 12 for monthly).<BR>\n" );
document.write( "n = number of years (n = 16).<BR>\n" );
document.write( "Compounded annually:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281%2Bi%2Fq%29%5Enq ALIGN=MIDDLE  ALT=\"A+=+P%281%2Bi%2Fq%29%5Enq\"   DISABLED_style= \"max-width:90%; height:auto;\" > Substitute P = 40000, i = 0.09, q = 1 (once per year), and n = 16:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+40000%281%2B0.09%29%5E16 ALIGN=MIDDLE  ALT=\"A+=+40000%281%2B0.09%29%5E16\"   DISABLED_style= \"max-width:90%; height:auto;\" >  Use your calculator.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+158812.24 ALIGN=MIDDLE  ALT=\"A+=+158812.24\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "A = $158,812.24<BR>\n" );
document.write( "Compounded quarterly:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281%2Bi%2Fq%29%5Enq ALIGN=MIDDLE  ALT=\"A+=+P%281%2Bi%2Fq%29%5Enq\"   DISABLED_style= \"max-width:90%; height:auto;\" > Substitute P = 40000, i = 0.09, q = 4 (4 times per year), and n = 16.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+40000%281%2B0.09%2F4%29%5E%284%2A16%29 ALIGN=MIDDLE  ALT=\"A+=+40000%281%2B0.09%2F4%29%5E%284%2A16%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Use your calculator.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+166154.56 ALIGN=MIDDLE  ALT=\"A+=+166154.56\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "A = $166,154.56<BR>\n" );
document.write( "You should now be able to do the last one yourself using the same formula and the same numbers except that q = 12 (for 12 times per year).  </SPAN>\n" );
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