document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=542769>Question 542769</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose a particular bank gives 3% interest on its savings accounts, compounded monthly. If one opens a savings account and deposits $ 300 each month for a total of 11 years, how much money will be in the account after the last deposit is made? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #354665 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><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=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=354665\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font face=\"Times New Roman\" size=\"+2\">\r<BR>\n" );
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document.write( "You want the future value of an ordinary annuity:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV_{oa}\ =\ PMT\left\[\frac{\left(1\ +\ i\right)^n\ -\ 1}{i}\right\]\">\r<BR>\n" );
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document.write( "Where\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ PMT\"> is the regular payment amount\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ i\"> is the interest <b><i>per period</i></b> as a decimal\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ n\"> is the number of periods.\r<BR>\n" );
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document.write( "3% per annum divided by 12 months is 0.06 divided by 12 equals 0.0025 per period.\r<BR>\n" );
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document.write( "11 years times 12 months per year is 132 periods.\r<BR>\n" );
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document.write( "So:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV_{oa}\ =\ 300\left\[\frac{\left(1.0025\right)^{132}\ -\ 1}{0.0025}\right\]\">\r<BR>\n" );
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document.write( "Get out your calculator and get to work.\r<BR>\n" );
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document.write( "Note that this is only valid if you make the $300.00 deposit at the <b><i>end</i></b> of each month.\r<BR>\n" );
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document.write( "If you make the deposits at the beginning of each month, then you want the Future Value of an Annuity Due,\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE \ \ \ \ \ \ \ \ \ \ FV_{ad}\ =\ =\ FV_{oa}\left(1\ +\ i)\">\r<BR>\n" );
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document.write( "So for beginning of the month deposits you would just multiply your previous result by <IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\Large 1.0025\">\r<BR>\n" );
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document.write( "John<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=\"/cgi-bin/rendertex.cgi?\LARGE e^{i\pi} + 1 = 0\"><BR>\n" );
document.write( "My calculator said it, I believe it, that settles it<BR>\n" );
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