document.write( "Question 970977: You considering investing $1,500 at an interest rate of 5% compounded annually for
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Algebra.Com's Answer #593604 by Edwin McCravy(20059)\"\" \"About 
You can put this solution on YOUR website!
You considering investing $1,500 at an interest rate of 5% compounded annually for
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document.write( "Use the compound interest formula for the final amount A:\r\n" );
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document.write( "\"A\"\"%22%22=%22%22\"\"P%2A%281%2Br%2Fn%29%5E%28n%2At%29\"\r\n" );
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document.write( "Substituting:\r\n" );
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document.write( "P = 1500 <--the amount you start with.\r\n" );
document.write( "r = 0.05 <--5% expressed as a decimal\r\n" );
document.write( "n = 1    <--\"annually\" means the number of times per year interest is compounded\r\n" );
document.write( "         is 1 time per year.\r\n" );
document.write( "t = 2    <--the number of years.\r\n" );
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document.write( "\"A\"\"%22%22=%22%22\"\"1500%2A%281%2B0.05%2F1%29%5E%281%2A2%29\"\r\n" );
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document.write( "Punch that out on your calculator like this:\r\n" );
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document.write( "1500×(1+0.05÷1)^(1×2)=\r\n" );
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document.write( "and get $_____  (you do it!)\r\n" );
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document.write( "Then use the simple interest formula for the final amount A:\r\n" );
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document.write( "\"A\"\"%22%22=%22%22\"\"P%2BP%2Ar%2At%29\"\r\n" );
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document.write( "substituting:\r\n" );
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document.write( "P = 1500 <--the amount you start with.\r\n" );
document.write( "r = 0.07 <--7% expressed as a decimal\r\n" );
document.write( "t = 2    <--the number of years.\r\n" );
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document.write( "\"A\"\"%22%22=%22%22\"\"1500%2B1500%2A0.07%2A2%29\"\r\n" );
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document.write( "Punch that out on your calculator like this:\r\n" );
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document.write( "1500+1500×0.07×2=\r\n" );
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document.write( "and get $_____  (you do it!).\r\n" );
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document.write( "Then you can answer which option is better.\r\n" );
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document.write( "Edwin
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