document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=86995>Question 86995</A>: <I><SPAN STYLE=\"word-break: break-all;\"> PLEASE HELP ME I NEED HELP UNDERSTANDING HOW TO SOLVE THEM STEP BY STEP....\r<BR>\n" );
document.write( "\n" );
document.write( "Problem #8<BR>\n" );
document.write( "Which of the following investments is larger after 19 years?\r<BR>\n" );
document.write( "\n" );
document.write( "  (a)  $7500 is deposited annually and earns 4.5% interest compounded annually.<BR>\n" );
document.write( "  (b)  $600 is deposited monthly and earns 4.5% interest compounded monthly.\r<BR>\n" );
document.write( "\n" );
document.write( "Problem #9<BR>\n" );
document.write( "	Find monthly payment.\r<BR>\n" );
document.write( "\n" );
document.write( "In order to purchase a home, a family borrows $26000 at 10.8 % for 15 yr. What is their monthly payment? Round the answer to the nearest cent.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #62958 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=62958\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Problem #8<BR>\n" );
document.write( "Which of the following investments is larger after 19 years?\r<BR>\n" );
document.write( "\n" );
document.write( "  (a)  $7500 is deposited annually and earns 4.5% interest compounded annually.<BR>\n" );
document.write( "  (b)  $600 is deposited monthly and earns 4.5% interest compounded monthly.<BR>\n" );
document.write( "-------<BR>\n" );
document.write( "Compare their growth using  compound interest formula and the the Future Value formula:<BR>\n" );
document.write( "Compound Interest: FV = (principal)(1+r/n)^(nt)<BR>\n" );
document.write( "FV = 7500(1+0.045/1)^(1*19)<BR>\n" );
document.write( "-------<BR>\n" );
document.write( "Future Value: FV = (periodic payment)[(1+i)^n -1]/i<BR>\n" );
document.write( "where periodic payment = $600; n=12*19 ; i=0.045/12<BR>\n" );
document.write( "======================\r<BR>\n" );
document.write( "\n" );
document.write( "Problem #9<BR>\n" );
document.write( "	Find monthly payment.\r<BR>\n" );
document.write( "\n" );
document.write( "In order to purchase a home, a family borrows $26000 at 10.8 % for 15 yr. What is their monthly payment? Round the answer to the nearest cent.<BR>\n" );
document.write( "--------<BR>\n" );
document.write( "Use this annuity formla:<BR>\n" );
document.write( "balance = (loan amt)(1+i)^n - [P/i][(1+i)^n - 1]<BR>\n" );
document.write( "You want the balance to be zero; <BR>\n" );
document.write( "loan amt=26000<BR>\n" );
document.write( "i=0.108/12<BR>\n" );
document.write( "n=12*15<BR>\n" );
document.write( "Solve for P=monthly payment.<BR>\n" );
document.write( "--------<BR>\n" );
document.write( "I get $292.26<BR>\n" );
document.write( "============<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );