document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=925620>Question 925620</A>: <I><SPAN STYLE=\"word-break: break-all;\"> TC is planning to build his new house. To meet the building expenses,he wants to deposit enough money in an account to be able to withdraw P10000 each month for the next 6 months.the account pays 12% interest per year compounded monthly.how much should TC deposit in the account today to have enough for these 6 withdrawals? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #561674 by </B><A HREF=/tutors/aboutme.mpl?userid=josmiceli><B>josmiceli(19441)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=josmiceli><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=josmiceli><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=561674\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "My view of this is that if TC draws money<BR>\n" );
document.write( "out at a faster rate than it is collecting<BR>\n" );
document.write( "interest, then that seems to violate his <BR>\n" );
document.write( "agreement to leave the principle in for a year.<BR>\n" );
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document.write( "So my view is that TC should only draw out <BR>\n" );
document.write( "interest in 6 withdrawals<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+10000%2A6+=+60000+ ALIGN=MIDDLE  ALT=\"+10000%2A6+=+60000+\"   DISABLED_style= \"max-width:90%; height:auto;\" > is the total he wants to <BR>\n" );
document.write( "withdraw<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+.12%2F12+%29%5E%28+12%2A1%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+.12%2F12+%29%5E%28+12%2A1%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A1.01%5E12+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A1.01%5E12+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+1.1268P+ ALIGN=MIDDLE  ALT=\"+A+=+1.1268P+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "-------------------<BR>\n" );
document.write( "The actual interest accumulated in a year is:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+1.1268P+-+P+=+.1268P+ ALIGN=MIDDLE  ALT=\"+1.1268P+-+P+=+.1268P+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "I want <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+600000+=+%28+.1268P+%29+%2F+2+ ALIGN=MIDDLE  ALT=\"+600000+=+%28+.1268P+%29+%2F+2+\"   DISABLED_style= \"max-width:90%; height:auto;\" > ( a half-year )<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+.0634P+=+60000+ ALIGN=MIDDLE  ALT=\"+.0634P+=+60000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+946372.24+ ALIGN=MIDDLE  ALT=\"+P+=+946372.24+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "TC needs to deposit $946,372.24 today<BR>\n" );
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document.write( "DEFINITELY get a 2nd opinion on this. I think my<BR>\n" );
document.write( "approach is right, but I could be out in left field, too.<BR>\n" );
document.write( "Hope it helps.\r<BR>\n" );
document.write( "<BR>\n" );
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document.write( "  </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );