document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=952447>Question 952447</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hello, I'm a bit confused with my homework. I am told to find the compound interest but I am having a problem with the compound interval and length of time.<BR>\n" );
document.write( "The principle is $500.00, the interest rate is 4%, the compounding interval is quarterly, and the length of time is 1 year. I know all the rest except the compound interval and time. How do I do that? Is it 4/12? My score book says the right answer is 1/4. Please help me understand  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #581649 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=581649\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <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( "--------------------------<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+ ALIGN=MIDDLE  ALT=\"+t+\"   DISABLED_style= \"max-width:90%; height:auto;\" > is the number of years of the investment period<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+n+ ALIGN=MIDDLE  ALT=\"+n+\"   DISABLED_style= \"max-width:90%; height:auto;\" > is the number of times the interest gets<BR>\n" );
document.write( "compounded each year<BR>\n" );
document.write( "---------------------------<BR>\n" );
document.write( "You are given:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+=+1+ ALIGN=MIDDLE  ALT=\"+t+=+1+\"   DISABLED_style= \"max-width:90%; height:auto;\" > yr<BR>\n" );
document.write( "Compounding quarterly means <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+n+=+4+ ALIGN=MIDDLE  ALT=\"+n+=+4+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "So, the compounding is happening<BR>\n" );
document.write( "every <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+3+ ALIGN=MIDDLE  ALT=\"+3+\"   DISABLED_style= \"max-width:90%; height:auto;\" > months, since <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+12%2F4+=+3+ ALIGN=MIDDLE  ALT=\"+12%2F4+=+3+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "and<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+500+ ALIGN=MIDDLE  ALT=\"+P+=+500+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "--------------------------------------<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+500%2A%28+1+%2B+.04%2F4+%29%5E%284%2A1%29+ ALIGN=MIDDLE  ALT=\"+A+=+500%2A%28+1+%2B+.04%2F4+%29%5E%284%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+=+500%2A%28+1+%2B+.01+%29%5E4+ ALIGN=MIDDLE  ALT=\"+A+=+500%2A%28+1+%2B+.01+%29%5E4+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+500%2A1.01%5E4+ ALIGN=MIDDLE  ALT=\"+A+=+500%2A1.01%5E4+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+500%2A1.040604+ ALIGN=MIDDLE  ALT=\"+A+=+500%2A1.040604+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+520.30+ ALIGN=MIDDLE  ALT=\"+A+=+520.30+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "This is Interest + Principle after 1 yr, so the <BR>\n" );
document.write( "interest earned is $20.30 \r<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );