document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=759702>Question 759702</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use the compound formula A=Pe^rt<BR>\n" );
document.write( " To solve the problem given. Round answers to the nearest cent.<BR>\n" );
document.write( "Find the accumulated value of an investment of $20,000 for 4 years at an interst rate of 4.5% if the money is <BR>\n" );
document.write( "a.	Compounded semi=annually ___(Round to the nearest cent)<BR>\n" );
document.write( "b.	What is the accumulated value if the money is compounded monthly? ___(Round to the nearest cent)<BR>\n" );
document.write( "c.	What is the accumulated value  if the money is compounded continuously?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #462183 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=462183\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use the compound formula A=Pe^rt<BR>\n" );
document.write( "To solve the problem given. Round answers to the nearest cent.<BR>\n" );
document.write( "Find the accumulated value of an investment of $20,000 for 4 years at an interst rate of 4.5% if the money is <BR>\n" );
document.write( "a.	Compounded semi=annually ___(Round to the nearest cent)<BR>\n" );
document.write( "b.	What is the accumulated value if the money is compounded monthly? ___(Round to the nearest cent)<BR>\n" );
document.write( "c.	What is the accumulated value if the money is compounded continuously?<BR>\n" );
document.write( "***<BR>\n" );
document.write( "Compound Interest formula for fixed periods: A=P(1+i)^n, P=initial investment, i=interest rate per period, n=number of periods, A=amount after n periods.<BR>\n" );
document.write( "..<BR>\n" );
document.write( "Formula for continuous compounding: A=Pe^rt, P=initial investment, r=annual interest rate, t=number of years, A=amount after t years<BR>\n" );
document.write( "..<BR>\n" );
document.write( "a. Compounded semi=annually<BR>\n" );
document.write( "P=$20000<BR>\n" );
document.write( "i=.045/2=0.0225<BR>\n" );
document.write( "n=4*2=8<BR>\n" );
document.write( "A=20000(1+0.0225)^8<BR>\n" );
document.write( "A=20000(1.0225)^8=$23,896.62<BR>\n" );
document.write( "..<BR>\n" );
document.write( "b. Compounded monthly<BR>\n" );
document.write( "P=$20000<BR>\n" );
document.write( "i=.045/12=0.00375<BR>\n" );
document.write( "n=4*12=48<BR>\n" );
document.write( "A=20000(1+0.00375)^48<BR>\n" );
document.write( "A=20000(1.00375)^48=$23,936.29<BR>\n" );
document.write( "..<BR>\n" );
document.write( "c. Continuous compounding:<BR>\n" );
document.write( "P=$20000<BR>\n" );
document.write( "r=.045<BR>\n" );
document.write( "n=4    <BR>\n" );
document.write( "A=20000*e^(.045*4)<BR>\n" );
document.write( "A=20000*e^0.18=$23944.35<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );