document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=891591>Question 891591</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A credit union client deposits $900 in an account earning 9.5% interest, compounded quarterly. What will the balance of the account be at the end of 19<BR>\n" );
document.write( "years?<BR>\n" );
document.write( "Enter the answer in dollars and cents, and round to the nearest cent, if needed. Do not include the dollar sign. For example, if the answer is $0.61, only the<BR>\n" );
document.write( "number 0.61 should be entered.<BR>\n" );
document.write( "Balance $ ____________after 19 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #539959 by </B><A HREF=/tutors/aboutme.mpl?userid=LinnW><B>LinnW(1048)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=LinnW><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=LinnW><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=539959\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An annual interest rate paid quarterly means<BR>\n" );
document.write( "that each quarter, 9.5% / 4 is applied each quarter.<BR>\n" );
document.write( "This is 2.375%<BR>\n" );
document.write( "Since we are compounding for 19 years we will have<BR>\n" );
document.write( "19*4 =  76 compounding periods<BR>\n" );
document.write( "So the amount in the account after 19 years is<BR>\n" );
document.write( "(900)*(1.02375)^76 = 5357.72 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );