document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=70509>Question 70509</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0130504866/algebrahomeworkh></A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> you deposit $600 in a savings account for 3 years. The account pays 8% annual interest compounded quarterly.<BR>\n" );
document.write( "a. What is the quartely interest rate?<BR>\n" );
document.write( "b. What is the number of payment periods?<BR>\n" );
document.write( "c. Find the final balance in the account. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #50292 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=50292\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you deposit $600 in a savings account for 3 years. The account pays 8% annual interest compounded quarterly.<BR>\n" );
document.write( "Formula:<BR>\n" );
document.write( "A(t) = P(1+r/n)^(nt)<BR>\n" );
document.write( "A(t) is the value after t years<BR>\n" );
document.write( "P is the original deposit<BR>\n" );
document.write( "r is the annual interest rate<BR>\n" );
document.write( "n is the number of times the money is compounded in a year<BR>\n" );
document.write( "t is the number of years the investment has been compounding.<BR>\n" );
document.write( "------------------\r<BR>\n" );
document.write( "\n" );
document.write( "a. What is the quartely interest rate?<BR>\n" );
document.write( "=0.08/4 = 0.02<BR>\n" );
document.write( "------------<BR>\n" );
document.write( "b. What is the number of payment periods?<BR>\n" );
document.write( "four per year for 3 years = 12 payment periods.<BR>\n" );
document.write( "-------------------<BR>\n" );
document.write( "c. Find the final balance in the account.<BR>\n" );
document.write( "A(3)=600(1+0.2)^(4*3)<BR>\n" );
document.write( "A(3)=600*1.02^12<BR>\n" );
document.write( "A(3)=$760.95<BR>\n" );
document.write( "-------<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );