document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=587926>Question 587926</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I am lost on this question. Please help if you can... would be greatly appreciated and please provide a detailed explanation of how you got the answer.\r<BR>\n" );
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document.write( "a. What is the future value of $12,000 invested today in 9 years time if<BR>\n" );
document.write( "interest was earned at 4.9% compounded semiannually?<BR>\n" );
document.write( "b. What is the total dollar amount of interest earned by this investment?<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 #374300 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><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=374300\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a. What is the future value of $12,000 invested today in 9 years time if<BR>\n" );
document.write( "interest was earned at 4.9% compounded semiannually?<BR>\n" );
document.write( "b. What is the total dollar amount of interest earned by this investment?<BR>\n" );
document.write( "**<BR>\n" );
document.write( "Compound Interest Formula: A=P(1+r)^n, P=initial investment, r=interest rate per period, n=number of periods, A=amount after n periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=12000<BR>\n" );
document.write( "r=.049/2=0.0245<BR>\n" );
document.write( "n=2*9=18 <BR>\n" );
document.write( "..<BR>\n" );
document.write( "A=12000(1+.0245)^18<BR>\n" );
document.write( "A=12000(1.0245)^18=18552.25<BR>\n" );
document.write( "Interest=18552.25-12000=6552.25<BR>\n" );
document.write( "..<BR>\n" );
document.write( "future value of $12,000=$18552.25<BR>\n" );
document.write( "amount of interest earned =$6552.25<BR>\n" );
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