document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=806713>Question 806713</A>: <I><SPAN STYLE=\"word-break: break-all;\"> FV=4900(2.3)<BR>\n" );
document.write( "FV=$11270.00\r<BR>\n" );
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document.write( "This answer was given to me by: rfer13424, but it is incorrect.  I have no idea where they got (2.3). This is the problem: To what amount will $4,900 invested for 8 years at 11% compounded annually accumulate? Round to the nearest cent.\r<BR>\n" );
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document.write( "The correct answer is: $11,292.24\r<BR>\n" );
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document.write( "How did they get the correct answer? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #485980 by </B><A HREF=/tutors/aboutme.mpl?userid=richwmiller><B>richwmiller(17219)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=richwmiller><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/cgi-bin/show-face.mpl?user=richwmiller><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=485980\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> $11,292.24 is correct<BR>\n" );
document.write( "You want to calculate your new prinicpal from:<BR>\n" );
document.write( "an initial investement of $4900<BR>\n" );
document.write( "at 11% annual interest,<BR>\n" );
document.write( "compounded 1 times per year,<BR>\n" );
document.write( "after 8 year(s).<BR>\n" );
document.write( "Before we start, be sure to convert your interest rate at the time of compounding, 11%, into a decimal by dividing it by 100, so 11% becomes 0.11 for calculation purposes.\r<BR>\n" );
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document.write( "Year 1, compounding time #1<BR>\n" );
document.write( "Current principal is $4900.00<BR>\n" );
document.write( "Interest earned on $4900.00 is $4900.00 × 0.11 = 539.00<BR>\n" );
document.write( "This makes your new principal $4900.00 + $539.00 = $5439.00<BR>\n" );
document.write( "Year 2, compounding time #1<BR>\n" );
document.write( "Current principal is $5439.00<BR>\n" );
document.write( "Interest earned on $5439.00 is $5439.00 × 0.11 = 598.29<BR>\n" );
document.write( "This makes your new principal $5439.00 + $598.29 = $6037.29<BR>\n" );
document.write( "Year 3, compounding time #1<BR>\n" );
document.write( "Current principal is $6037.29<BR>\n" );
document.write( "Interest earned on $6037.29 is $6037.29 × 0.11 = 664.10<BR>\n" );
document.write( "This makes your new principal $6037.29 + $664.10 = $6701.39<BR>\n" );
document.write( "Year 4, compounding time #1<BR>\n" );
document.write( "Current principal is $6701.39<BR>\n" );
document.write( "Interest earned on $6701.39 is $6701.39 × 0.11 = 737.15<BR>\n" );
document.write( "This makes your new principal $6701.39 + $737.15 = $7438.55<BR>\n" );
document.write( "Year 5, compounding time #1<BR>\n" );
document.write( "Current principal is $7438.55<BR>\n" );
document.write( "Interest earned on $7438.55 is $7438.55 × 0.11 = 818.24<BR>\n" );
document.write( "This makes your new principal $7438.55 + $818.24 = $8256.79<BR>\n" );
document.write( "Year 6, compounding time #1<BR>\n" );
document.write( "Current principal is $8256.79<BR>\n" );
document.write( "Interest earned on $8256.79 is $8256.79 × 0.11 = 908.25<BR>\n" );
document.write( "This makes your new principal $8256.79 + $908.25 = $9165.03<BR>\n" );
document.write( "Year 7, compounding time #1<BR>\n" );
document.write( "Current principal is $9165.03<BR>\n" );
document.write( "Interest earned on $9165.03 is $9165.03 × 0.11 = 1008.15<BR>\n" );
document.write( "This makes your new principal $9165.03 + $1008.15 = $10173.18<BR>\n" );
document.write( "Year 8, compounding time #1<BR>\n" );
document.write( "Current principal is $10173.18<BR>\n" );
document.write( "Interest earned on $10173.18 is $10173.18 × 0.11 = 1119.05<BR>\n" );
document.write( "This makes your new principal $10173.18 + $1119.05 = $11292.23<BR>\n" );
document.write( "In the end, $4900 has turned into $11292.23.<BR>\n" );
document.write( "You have made $6392.23<BR>\n" );
document.write( "the formula is<BR>\n" );
document.write( "A = P(1 + r)^n<BR>\n" );
document.write( "p =4900<BR>\n" );
document.write( "r=11<BR>\n" );
document.write( "n=8<BR>\n" );
document.write( "a=4900(1+.11)^8 </SPAN>\n" );
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