document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=970620>Question 970620</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You deposit $750 into a savings account that pays 8% interest compounded yearly. How much money is in the account after 7 years assuming no additional deposits or withdrawls were made?  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #593216 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=593216\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P=Po * {1 + (r/n)}^nt    P=money at the end    Po= principal at beginning.\r<BR>\n" );
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document.write( "P= $750 *  {1 + (.08)}^7   n=1, so it does neither affects r/n  nor affects nt\r<BR>\n" );
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document.write( "{1.08}^7= 1.7138\r<BR>\n" );
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document.write( "P=$1285.36\r<BR>\n" );
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document.write( "You can't easily check this, but 72/interest rate    = time in years it takes money to double.\r<BR>\n" );
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document.write( "72/8  = 9 years for doubling.\r<BR>\n" );
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document.write( "The money should not have doubled yet, and it hasn't.  The formula above works for continuously compounding interest, but it is a rough way to check. </SPAN>\n" );
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