document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1046232>Question 1046232</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1. Ellen has $8000 to invest in an RESP (Registered Education Savings Plan) for 7 years. Should she invest her $8000 at 6% compounded semi-annually or should she invest her $8000 at 7.5% with simple interest? Explain your choice. Identify the function, in each case.\r<BR>\n" );
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document.write( "2.Adam is saving for a down payment on a house. How much must he invest now, in one lump sum, in order to have $20 000 at the end of 5 years? Assume the annual interest rate 6.25% compounded monthly.\r<BR>\n" );
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document.write( "3. Determine the time it takes to double an investment in an account that pays interest of 4% per annum, compounded quarterly. <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 #661715 by </B><A HREF=/tutors/aboutme.mpl?userid=josmiceli><B>josmiceli(19441)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=josmiceli><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=josmiceli><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=661715\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> (1)<BR>\n" );
document.write( "Formula for compound interest:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+8000+ ALIGN=MIDDLE  ALT=\"+P+=+8000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r+=+.06+ ALIGN=MIDDLE  ALT=\"+r+=+.06+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+n+=+2+ ALIGN=MIDDLE  ALT=\"+n+=+2+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+=+7+ ALIGN=MIDDLE  ALT=\"+t+=+7+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "-----------------<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+8000%2A%28+1+%2B+.06%2F2+%29%5E%28+2%2A7+%29+ ALIGN=MIDDLE  ALT=\"+A+=+8000%2A%28+1+%2B+.06%2F2+%29%5E%28+2%2A7+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+8000%2A%28+1.03+%29%5E14+ ALIGN=MIDDLE  ALT=\"+A+=+8000%2A%28+1.03+%29%5E14+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+8000%2A1.51259+ ALIGN=MIDDLE  ALT=\"+A+=+8000%2A1.51259+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+12100.72+ ALIGN=MIDDLE  ALT=\"+A+=+12100.72+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "---------------------------<BR>\n" );
document.write( "Formula for simple interest:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r%2At+%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r%2At+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+8000%2A%28+1+%2B+.075%2A7+%29+ ALIGN=MIDDLE  ALT=\"+A+=+8000%2A%28+1+%2B+.075%2A7+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+8000%2A%28+1+%2B+.525+%29+ ALIGN=MIDDLE  ALT=\"+A+=+8000%2A%28+1+%2B+.525+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+12200+ ALIGN=MIDDLE  ALT=\"+A+=+12200+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "-------------------<BR>\n" );
document.write( "The investment at 7.5% simple interest <BR>\n" );
document.write( "gives her more return<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+12200+-+12100.72+=+99.28+ ALIGN=MIDDLE  ALT=\"+12200+-+12100.72+=+99.28+\"   DISABLED_style= \"max-width:90%; height:auto;\" > more in 7 yrs<BR>\n" );
document.write( "---------------------<BR>\n" );
document.write( "(2)<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+20000+ ALIGN=MIDDLE  ALT=\"+A+=+20000+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r+=+.0625+ ALIGN=MIDDLE  ALT=\"+r+=+.0625+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+n+=+12+ ALIGN=MIDDLE  ALT=\"+n+=+12+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+=+5+ ALIGN=MIDDLE  ALT=\"+t+=+5+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+20000+=+P%2A%28+1+%2B+.0625%2F12+%29%5E%2812%2A5%29+ ALIGN=MIDDLE  ALT=\"+20000+=+P%2A%28+1+%2B+.0625%2F12+%29%5E%2812%2A5%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+20000+=+P%2A%28+1+%2B+.005208+%29%5E60+ ALIGN=MIDDLE  ALT=\"+20000+=+P%2A%28+1+%2B+.005208+%29%5E60+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+20000+=+P%2A1.36573+ ALIGN=MIDDLE  ALT=\"+20000+=+P%2A1.36573+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+P+=+14644.18+ ALIGN=MIDDLE  ALT=\"+P+=+14644.18+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "she should invest $14,644.18 now<BR>\n" );
document.write( "--------------------------------<BR>\n" );
document.write( "(3)<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+ ALIGN=MIDDLE  ALT=\"+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+A+=+2P+ ALIGN=MIDDLE  ALT=\"+A+=+2P+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r+=+.04+ ALIGN=MIDDLE  ALT=\"+r+=+.04+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+n+=+4+ ALIGN=MIDDLE  ALT=\"+n+=+4+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2P+=+P%2A%28+1+%2B+.04%2F4+%29%5E%284t%29+ ALIGN=MIDDLE  ALT=\"+2P+=+P%2A%28+1+%2B+.04%2F4+%29%5E%284t%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2+=+%28+1+%2B+.01+%29%5E%284t%29+ ALIGN=MIDDLE  ALT=\"+2+=+%28+1+%2B+.01+%29%5E%284t%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Take the log base 10 of both sides<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+log%282%29+=+4t%2Alog%28+1.01+%29+ ALIGN=MIDDLE  ALT=\"+log%282%29+=+4t%2Alog%28+1.01+%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+.301+=+4t%2A.004321+ ALIGN=MIDDLE  ALT=\"+.301+=+4t%2A.004321+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+.301+=+.017285t+ ALIGN=MIDDLE  ALT=\"+.301+=+.017285t+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+t+=+17.413+ ALIGN=MIDDLE  ALT=\"+t+=+17.413+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+.413%2A12+=+4.96+ ALIGN=MIDDLE  ALT=\"+.413%2A12+=+4.96+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "it will take about 17 yrs and 5 months<BR>\n" );
document.write( "to double an investment<BR>\n" );
document.write( "-------------------------<BR>\n" );
document.write( "check answer:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2+=+%28+1+%2B+.01+%29%5E%284t%29+ ALIGN=MIDDLE  ALT=\"+2+=+%28+1+%2B+.01+%29%5E%284t%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2+=+1.01+%5E%284%2A17.413%29+ ALIGN=MIDDLE  ALT=\"+2+=+1.01+%5E%284%2A17.413%29+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2+=+1.01%5E69.652+ ALIGN=MIDDLE  ALT=\"+2+=+1.01%5E69.652+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+2+=+1.99983+ ALIGN=MIDDLE  ALT=\"+2+=+1.99983+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "close enough </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );