document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=647539>Question 647539</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I have 500 dollars in the bank, I will continue to put 100 dollars into the bank account monthly.  I have a compound interest of .8%.  What is the equation to find the solution at any given time?  What is the total amount after 10 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #406286 by </B><A HREF=/tutors/aboutme.mpl?userid=DrBeeee><B>DrBeeee(684)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=DrBeeee><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=406286\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula is<BR>\n" );
document.write( "(1) B = P*(1+r)^m<BR>\n" );
document.write( "Where B = your balance of money ($) at the end of m months when P is the amount you start with ($500 in your case) and r is the MONTHLY interest rate expressed as a decimal. Apply (1) to your case we get<BR>\n" );
document.write( "(2) B = 500*(1.008)^m<BR>\n" );
document.write( "After 10 years or 120 months you will have<BR>\n" );
document.write( "(3) B = 500*(1.008)^120 or<BR>\n" );
document.write( "(4) B = 500*(2.6017398) or<BR>\n" );
document.write( "(5) B = 1300.8699 or<BR>\n" );
document.write( "(6) B = $1300.87<BR>\n" );
document.write( "If it was not compounded monthly you would get<BR>\n" );
document.write( "(7) b = 500*(1.096)^10 or<BR>\n" );
document.write( "(8) b = 500(2.5009531) or<BR>\n" );
document.write( "(9) b = $1250.48<BR>\n" );
document.write( "Only about $50 less. The compounding is over-rated don't you think? </SPAN>\n" );
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