document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=873419>Question 873419</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The question states \"You take out a loan of $800 and the bank charges you 15% compounded interest per year. If *you don't pay off any of the loan in 4 years*, how much money would you owe them?\"\r<BR>\n" );
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document.write( " I'm thinking of using this formula <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P%281%2Br%2Fn%29%5Ent+ ALIGN=MIDDLE  ALT=\"+P%281%2Br%2Fn%29%5Ent+\"   DISABLED_style= \"max-width:90%; height:auto;\" > but I'm not sure </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #526856 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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=526856\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You are correct. Assuming it's compounded annually, you plug in\r<BR>\n" );
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document.write( "P = 800 (the amount loaned)<BR>\n" );
document.write( "r = 0.15 (15% = 15/100 = 0.15)<BR>\n" );
document.write( "n = 1 (compounding 1 time per year)<BR>\n" );
document.write( "t = 4 (number of years)\r<BR>\n" );
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document.write( "If you are compounding at different rates, then you change the value of n. For example, if you compound it quarterly, then you compound 4 times a year (so n = 4). If you compound monthly, then n = 12.  </SPAN>\n" );
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