document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=882297>Question 882297</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If you invest 50000 at an annual investment rate of 7.5% how much will your investment be worth after 11 years if your investment is compounded quarterly  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #532768 by </B><A HREF=/tutors/aboutme.mpl?userid=DrBeeee><B>DrBeeee(684)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=DrBeeee><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=532768\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use the formula<BR>\n" );
document.write( "(1) B = P*(1 + r/4)^(4*t) where r ii the annual rate written as a decimal and t is the number of years.<BR>\n" );
document.write( "The reason for the four is due to the quarterly compounding. (If it was monthly use 12 instead of 4 in the rate and exponent.) Using values we get<BR>\n" );
document.write( "(2) B = 50,000*(1 + 0.075/4)^(4*11) or<BR>\n" );
document.write( "(3) B = 50,000*(1.01875)^44 or<BR>\n" );
document.write( "(4) B = 50,000*(2.2645...) or<BR>\n" );
document.write( "(5) B = 113,225.79<BR>\n" );
document.write( "Answer: Your $50,000 investment is now worth $113,225.79 </SPAN>\n" );
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