document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=864399>Question 864399</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much interest will be earned at the end of 5 years on a deposit of $2500 in an account paying 5% interest compound monthly?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #520975 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=520975\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> How much interest will be earned at the end of 5 years on a deposit of $2500 in an account paying 5% interest compound monthly?<BR>\n" );
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document.write( "compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, n=number of periods, A =amount after n-periods<BR>\n" );
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document.write( "For given problem:<BR>\n" );
document.write( "P=$2500<BR>\n" );
document.write( "i=.05/12<BR>\n" );
document.write( "n=5*12=60<BR>\n" );
document.write( "A=2500(1+(.05/12))^60&#8776;$3208<BR>\n" );
document.write( "Interest earned=3208-2500=$708 </SPAN>\n" );
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