document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=70124>Question 70124</A>: <I><SPAN STYLE=\"word-break: break-all;\"> if you invest $100 at the end of each month in a fixed-interest mutual fund paying annual interest of 6% compounded monthly, how much will your investment be worth after 10 yrs? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #50001 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=50001\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> if you invest $100 at the end of each month in a fixed-interest mutual fund paying annual interest of 6% compounded monthly, how much will your investment be worth after 10 yrs?<BR>\n" );
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document.write( "Sounds like an annuity.  Here's the \"Future Value of Ordinary Annuity\" formula.<BR>\n" );
document.write( "S = R [(1+i)^n-1]/i<BR>\n" );
document.write( "S is the future value<BR>\n" );
document.write( "R is the periodic payment<BR>\n" );
document.write( "i is the periodic interest (in your case that is 0.06/12=0.005)<BR>\n" );
document.write( "n is the number pf payments (in your case n= 10*12 = 120<BR>\n" );
document.write( "---------<BR>\n" );
document.write( "A=100[(1.005)^120 - 1]/0.005<BR>\n" );
document.write( "A=100[0.819396734]/0.005<BR>\n" );
document.write( "A=100*363.879378<BR>\n" );
document.write( "A=$36,387.94<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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