document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=815266>Question 815266</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose $2500 is invested at a rate of 7% per year compounded monthly. (round answer to the nearest cent.)\r<BR>\n" );
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document.write( "Find the principal after 1 month<BR>\n" );
document.write( "Find the principal after 6 months<BR>\n" );
document.write( "Find the principal after 1 year<BR>\n" );
document.write( "Find the principal after 20 years\r<BR>\n" );
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document.write( "Im stuck at this point<BR>\n" );
document.write( "1000(1+0.07/12)^12t=<BR>\n" );
document.write( "I dont know how to get the answer from this point on.\r<BR>\n" );
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document.write( "Thank you!<BR>\n" );
document.write( "Pamela </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #490817 by </B><A HREF=/tutors/aboutme.mpl?userid=josgarithmetic><B>josgarithmetic(39617)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=josgarithmetic><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=490817\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The MONTHLY rate is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%287%2F12%29 ALIGN=MIDDLE  ALT=\"%287%2F12%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > percent, or <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.58333333 ALIGN=MIDDLE  ALT=\"0.58333333\"   DISABLED_style= \"max-width:90%; height:auto;\" > percent.\r<BR>\n" );
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document.write( "The model exponential equation is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=p=2500%2A%281.00583333%29%5Em ALIGN=MIDDLE  ALT=\"p=2500%2A%281.00583333%29%5Em\"   DISABLED_style= \"max-width:90%; height:auto;\" >,<BR>\n" );
document.write( "p = amount of credit or the balance<BR>\n" );
document.write( "m = how many months\r<BR>\n" );
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document.write( "You might want a time variable in years instead of months.  To use t for years, since 1 year is 12 months, then <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=t%2812%2F1%29=m ALIGN=MIDDLE  ALT=\"t%2812%2F1%29=m\"   DISABLED_style= \"max-width:90%; height:auto;\" > so from this you have <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=t=m%2F12 ALIGN=MIDDLE  ALT=\"t=m%2F12\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "You very well can use <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=p=2500%281%2B7%2F12%29%5E%2812t%29 ALIGN=MIDDLE  ALT=\"p=2500%281%2B7%2F12%29%5E%2812t%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > because now the rate used still IS the monthly rate and <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12t ALIGN=MIDDLE  ALT=\"12t\"   DISABLED_style= \"max-width:90%; height:auto;\" > IS the number of months because we just found we can use <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12t=m ALIGN=MIDDLE  ALT=\"12t=m\"   DISABLED_style= \"max-width:90%; height:auto;\" >.  NOTE VERY CAREFULLY, t is in YEARS.\r<BR>\n" );
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document.write( "Your main confusion was of forgetting that your initial principal amount was 2500 dollars. </SPAN>\n" );
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