document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1015075>Question 1015075</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you deposit $100 in a savings account that compounds annually at 2%. After 1 year at this rate, the bank changes its rate of compounding to 1.5% annually. Assuming the compounding rate does not change for 4 additional years, how much will your account be worth at the end of the 5-year period?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #631600 by </B><A HREF=/tutors/aboutme.mpl?userid=robertb><B>robertb(5830)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=robertb><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=robertb><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=631600\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use the compound balance formula <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281%2Br%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"A+=+P%281%2Br%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.<BR>\n" );
document.write( " For the first year, P = 100, r = 0.02, n = 1, and t = 1.<BR>\n" );
document.write( "==><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+100%281%2B0.02%2F1%29%5E1+=+102 ALIGN=MIDDLE  ALT=\"+A+=+100%281%2B0.02%2F1%29%5E1+=+102\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Hence the balance after 1 year is $102.\r<BR>\n" );
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document.write( "For the next 4 years, <BR>\n" );
document.write( "P = 102, r = 0.015, n = 1, and t = 4.\r<BR>\n" );
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document.write( "Hence, <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+102%281%2B0.015%2F1%29%5E4+=+102%2A1.015%5E4+=+108.26 ALIGN=MIDDLE  ALT=\"A+=+102%281%2B0.015%2F1%29%5E4+=+102%2A1.015%5E4+=+108.26\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Therefore the account will be worth $108.26 at the end of the 5-year period. </SPAN>\n" );
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