document.write( "Question 1035047: If $100 is invested at 4% compounded quarterly, what is the interest earned after:
\n" ); document.write( "3 years(interest earned)=
\n" ); document.write( "5 years(interest earned)= \n" ); document.write( "
Algebra.Com's Answer #649713 by Theo(13342)\"\" \"About 
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f = p * (1+r)^n
\n" ); document.write( "f is the future value
\n" ); document.write( "p is the present value
\n" ); document.write( "r is the interest rate per time period.
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "with quarterly compounding, the time period is 1 quarter.\r
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\n" ); document.write( "\n" ); document.write( ".04 per year / 4 = .01 interest rate per quarter.
\n" ); document.write( "3 years * 4 = 12 quarters.
\n" ); document.write( "5 years * 4 = 20 quarters.\r
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\n" ); document.write( "\n" ); document.write( "p = 100\r
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\n" ); document.write( "\n" ); document.write( "f = p * (1+r)^n for p = 100 and r = .01 and n = 12 becomes:
\n" ); document.write( "f = 100 * (1.01)^12 which becomes:
\n" ); document.write( "f = 112.682503.\r
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\n" ); document.write( "\n" ); document.write( "f = p * (1+r)^n for p = 100 and r = .01 and n = 20 becomes:
\n" ); document.write( "f = 100 * (1.01)^20 which becomes:
\n" ); document.write( "f = 122.019004\r
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