document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=543690>Question 543690</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Can someone explain each step involved in figuring compound interest quarterly?\r<BR>\n" );
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document.write( "I understand what each letter stands for and can plug the numbers into the formula.  My problem comes when you get to the nt exponent.  I do not understand that part of the problem.\r<BR>\n" );
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document.write( "For example: If you have $1500 earning 4.3% interest compounded quarterly, how much money will be there in 7 years?\r<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 #354969 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=354969\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If you have $1500 earning 4.3% interest compounded quarterly, how much money will be there in 7 years? \r<BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
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document.write( "Note: n*t is the number of times you are going to compound the money.<BR>\n" );
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document.write( "Your Problem:<BR>\n" );
document.write( "A(17) = 1500(1+(0.043/12))^(12*17) <BR>\n" );
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document.write( "A(17) = 1500(1.00358)^(204)<BR>\n" );
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document.write( "Note: 0.00358 is the interest rate per month.<BR>\n" );
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document.write( "A(17) = 1500*2.0730<BR>\n" );
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document.write( "A(17) = $3109.56<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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