document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=999514>Question 999514</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Sally has a stock that earns 10% every year. She says that if the stock does this every year for 5 years, it will have gained 50% overall. Is Sally correct? Why or why not? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #617131 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><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=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=617131\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Let's call the amount at the end of 5 years A. Also, the initial investment we will call P, and r will be the rate (rate is another word for interest) and t is for time. Our formula is:<BR>\n" );
document.write( "A= Prt<BR>\n" );
document.write( "We are trying to find out what rt will be at the end of 5 years if the investment pays 10%/year:<BR>\n" );
document.write( "A= P*0.10*5<BR>\n" );
document.write( "A= P*0.5 and if we multiply 0.5*100 we get 50%<BR>\n" );
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document.write( "NOTE: %, percent is better described as per-cent, which literally means per one hundred. This is why we divide the percentage by 100, so we can know how much it is per one. For example, if I have 10 dollars and make 20%... well, the number doesn't help me. I don't have 100, I have 10. So I divide the 20/100= .20 and now, since I know it's .20 per one, I can multiply the .20*10 and know that I made 2. </SPAN>\n" );
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