document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=6400>Question 6400</A>: <I><SPAN STYLE=\"word-break: break-all;\"> first question:\r<BR>\n" );
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document.write( "how much money will you have to deposit in the bank today to buy a house, which will be worth $250,000 five years from now? the bank is charging 6% compounded yearly interest?\r<BR>\n" );
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document.write( "250000 = (2.06P)5   250000/5 = 2.06/5    50000? <BR>\n" );
document.write( "250000/ (1 + .06/2) 10\r<BR>\n" );
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document.write( "second question:\r<BR>\n" );
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document.write( "how much money will you have to deposit in the bank today to buy a boat which will be worth $7500 four years from today? use 6% simple interest. \r<BR>\n" );
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document.write( "hi there, \r<BR>\n" );
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document.write( "ugh! im so stuck., please please help me, thanks! \r<BR>\n" );
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document.write( "jen </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #3441 by </B><A HREF=/tutors/aboutme.mpl?userid=longjonsilver><B>longjonsilver(2297)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=longjonsilver><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=longjonsilver><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=3441\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> right then..fairly simple question so long as you understand what compound interest is:\r<BR>\n" );
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document.write( "Lets start with a definition: Let x = amount we start with. So,\r<BR>\n" );
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document.write( "now = x<BR>\n" );
document.write( "after 1 year, we will have 1.06x ie 6% increase.<BR>\n" );
document.write( "after 2 years we will have 1.06(1.06x) ie a 6% increase of last year's amount.<BR>\n" );
document.write( "after 2 years we will have 1.06(1.06(1.06x)) ie a 6% increase of last year's amount... etc\r<BR>\n" );
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document.write( "so, we get a pattern forming:\r<BR>\n" );
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document.write( "now = x<BR>\n" );
document.write( "after 1 year = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06x ALIGN=MIDDLE  ALT=\"1.06x\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "after 2 years = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06%5E2%28x%29 ALIGN=MIDDLE  ALT=\"1.06%5E2%28x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > <BR>\n" );
document.write( "after 3 years = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06%5E3%28x%29 ALIGN=MIDDLE  ALT=\"1.06%5E3%28x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "after 4 years = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06%5E4%28x%29 ALIGN=MIDDLE  ALT=\"1.06%5E4%28x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "after 5 years = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06%5E5%28x%29 ALIGN=MIDDLE  ALT=\"1.06%5E5%28x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > which is equal to 250000\r<BR>\n" );
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document.write( "so, <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1.06%5E5%28x%29+=+250000 ALIGN=MIDDLE  ALT=\"1.06%5E5%28x%29+=+250000\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x+=+250000%2F%281.06%5E5%29 ALIGN=MIDDLE  ALT=\"x+=+250000%2F%281.06%5E5%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "x = 186,814.55 rounded up to nearest cent.\r<BR>\n" );
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document.write( "jon.<BR>\n" );
document.write( " </SPAN>\n" );
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