document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=891012>Question 891012</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An initial deposit of $36,000 grows at an annual rate of 8% for 24 years. Compare the final balances resulting from continuous compounding and annual compounding. (Round your answers to the nearest cent.)\r<BR>\n" );
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document.write( "from continuous compounding=???<BR>\n" );
document.write( "from annual compounding=??? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #539445 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=539445\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> formula for continuous compounding is f = p * e^(i*n)<BR>\n" );
document.write( "i is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "formula for annual compounding is f = p * (1+i)^n<BR>\n" );
document.write( "i is the interest rated per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "time period is in years.<BR>\n" );
document.write( "i = .08 per year.<BR>\n" );
document.write( "n = 24 years.\r<BR>\n" );
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document.write( "your continuous compounding formula becomes:\r<BR>\n" );
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document.write( "f = 36,000 * e^(.08*24) which results in f = 245,554.5049\r<BR>\n" );
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document.write( "your annual compounding formula becomes:\r<BR>\n" );
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document.write( "f = 36,000 * (1.08)^24 which results in f = 228,282.5065\r<BR>\n" );
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document.write( "you may round the answer to the nearest cent as required.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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