document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=758757>Question 758757</A>: <I><SPAN STYLE=\"word-break: break-all;\"> if $2,000 is invested at 7% compounded <BR>\n" );
document.write( "(A) annually   (B) quarterly    (C) monthly <BR>\n" );
document.write( "what is the amount after 5 years? How much interest is earned?\r<BR>\n" );
document.write( "\n" );
document.write( "Please show the steps taken to get the answers, so I can better understand how to solce future problems such as this. <BR>\n" );
document.write( "Thanks  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #461656 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=461656\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> if $2,000 is invested at 7% compounded <BR>\n" );
document.write( "(A) annually (B) quarterly (C) monthly <BR>\n" );
document.write( "what is the amount after 5 years? How much interest is earned? <BR>\n" );
document.write( "***<BR>\n" );
document.write( "compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, n=number of periods, A=amount after n years.<BR>\n" );
document.write( "..<BR>\n" );
document.write( "For annual compounding:<BR>\n" );
document.write( "P=2000<BR>\n" );
document.write( "i=7%/1=0.07<BR>\n" );
document.write( "n=5*1=5<BR>\n" );
document.write( "A=2000(1+.07)^5<BR>\n" );
document.write( "A=2000(1.07)^5<BR>\n" );
document.write( "A=2000(1.4026)=$2805<BR>\n" );
document.write( "..<BR>\n" );
document.write( "For quarterly compounding:<BR>\n" );
document.write( "P=2000<BR>\n" );
document.write( "i=7%/4=0.0175<BR>\n" );
document.write( "n=5*4=20<BR>\n" );
document.write( "A=2000(1+.0175)^20<BR>\n" );
document.write( "A=2000(1.0175)^20<BR>\n" );
document.write( "A=2000(1.1448)=$2830<BR>\n" );
document.write( "..<BR>\n" );
document.write( "For monthly compounding:<BR>\n" );
document.write( "P=2000<BR>\n" );
document.write( "i=7%/12=0.005833<BR>\n" );
document.write( "n=5*12=60<BR>\n" );
document.write( "A=2000(1+.005833)^60<BR>\n" );
document.write( "A=2000(1.005833)^60<BR>\n" );
document.write( "A=2000(1.4176)=$2835 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );