document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=655528>Question 655528</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much do you accumulate if you invest $5,000 @ 8% monthly for 9 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #409175 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=409175\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Please learn the terminology of interest etc. No one will pay you 8% per month! You mean to say the the interest is compounded monthly, much like a mortgage. However the interest rate of 8% is on an annual basis!<BR>\n" );
document.write( "The formula you need to use is<BR>\n" );
document.write( "(1) B = P(1+r/12)^(12t),<BR>\n" );
document.write( "where<BR>\n" );
document.write( "B = the balance of your \"investment\"<BR>\n" );
document.write( "P = principal amount invested<BR>\n" );
document.write( "r = annual interest rate expressed as a decimal<BR>\n" );
document.write( "t = number of years<BR>\n" );
document.write( "In your case you should use<BR>\n" );
document.write( "(2) B = 5000(1+(.08/12))^(12*9)<BR>\n" );
document.write( "Use you calculator to get<BR>\n" );
document.write( "(3) B = 5000*2.04995<BR>\n" );
document.write( "(4) B = $10,247.65<BR>\n" );
document.write( "If youy investment compounded yearly instead of monthly you would get<BR>\n" );
document.write( "(5) By = 5000*(1+.08)^9 or<BR>\n" );
document.write( "(6) By = $9,995.02 or $252.63 less. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );