document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=615668>Question 615668</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you deposit a principal amount of p dollars in abank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money A you would have after t years is given by A(t)=P(1+r/n)nt.<BR>\n" );
document.write( "Find the account balance after 20 years if you started with a deposit of $1000, and the bank was paying 4% interest compounded quarterly (4 times a year). Round your answer to the nearest cent.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #387266 by </B><A HREF=/tutors/aboutme.mpl?userid=unlockmath><B>unlockmath(1688)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=unlockmath><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=unlockmath><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=387266\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Hello, <BR>\n" );
document.write( "There's an error in the formula given : A(t)=P(1+r/n)nt<BR>\n" );
document.write( "It should be A(t)=P(1+r/n)^nt<BR>\n" );
document.write( "Now we can plug in the numbers:<BR>\n" );
document.write( "A=1000(1+.04/4)4(20)<BR>\n" );
document.write( "This comes out to:<BR>\n" );
document.write( "$2216.72 (approx)<BR>\n" );
document.write( "Make sense?<BR>\n" );
document.write( "RJ<BR>\n" );
document.write( "www.math-unlock.com </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );