document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=620147>Question 620147</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the future value and compound interest if £13500 is invested for 7 years at a rate of 15% per annum compounded monthly.<BR>\n" );
document.write( "How do you work this out? I have a maths exam tomorrow and nowhere explains how you do it :-( </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #389961 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=389961\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Find the future value and compound interest if £13500 is invested for 7 years at a rate of 15% per annum compounded monthly.<BR>\n" );
document.write( "**<BR>\n" );
document.write( "compound  interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amount after n periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=£13500<BR>\n" );
document.write( "period=month<BR>\n" );
document.write( "i=.15/12=.0125<BR>\n" );
document.write( "n=7*12=84<BR>\n" );
document.write( "..<BR>\n" );
document.write( "A=13500(1+.0125)^84<BR>\n" );
document.write( "A=13500(1.0125)^84<BR>\n" );
document.write( "A&#8776;£38328<BR>\n" );
document.write( "Future value=£38328 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );