document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=885940>Question 885940</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Manually calculate the compound interest on an investment of $12,500 at 7.5% interest, compounded semiannually, for 2 years. (Round value to the nearest cent.)<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 #535580 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=535580\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Manually calculate the compound interest on an investment of $12,500 at 7.5% interest, compounded semiannually, for 2 years. (Round value to the nearest cent.)<BR>\n" );
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document.write( "compound interest formula: A=P(1+i)^n,P=initial investment, i=interest rate per compounding period, n=number of periods, A=amt after n-periods<BR>\n" );
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document.write( "For given problem:<BR>\n" );
document.write( "P=12500<BR>\n" );
document.write( "i=.075/2=0.0375<BR>\n" );
document.write( "n=4 <BR>\n" );
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document.write( "A=12500(1+.0375)^4<BR>\n" );
document.write( "A=12500(1.0375)^4=14483.13<BR>\n" );
document.write( "amt gained-initial investment=14483.13-12500.00=1983.13<BR>\n" );
document.write( "Compound Interest=$1,983.13<BR>\n" );
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