document.write( "Question 932105: 1. Lauren plans to deposit $4,000 into a bank account at the beginning of next month and $100/month into the same account at the end of that month and at the end of each subsequent month for the next 3 yr. If her bank pays interest at the rate of 5%/year compounded monthly, how much will Lauren have in her account at the end of the 3 yr? (Assume she makes no withdrawals during the 3-yr period.) Please round the answer to the nearest cent.
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\n" ); document.write( "\n" ); document.write( "2. Pierce Publishing sells encyclopedias under two payment plans: cash or installment. Under the installment plan, the customer pays $21/month over 3 yr with interest charged on the balance at a rate of 15%/year compounded monthly. Find the cash price for a set of encyclopedias if it is equivalent to the price paid by a customer using the installment plan. Please round the answer to the nearest cent. \n" ); document.write( "

Algebra.Com's Answer #569610 by ptfile(81) $\"\"$ $\"About$

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document.write( "Let  r = interest rate\r\n" );
document.write( "     n = number of intervals\r\n" );
document.write( "     t = duration of the payment\r\n" );
document.write( "     A = monthly installment \r\n" );
document.write( "    PV = Present Value\r\n" );
document.write( "    FV = Final Value\r\n" );
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document.write( "1.\r\n" );
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document.write( "Her balance in 3 years is $8501.95.\r\n" );
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document.write( "2.\r\n" );
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document.write( "The price of a set of encyclopedias is $605.79.\r\n" );
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