document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=93147>Question 93147</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0536353484/algebrahomeworkh></A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> I am in need of great assistance...calling on experts for this pitiful student. I don't get algebra, I don't get it..I don't get it......My mind is flying with variables that I cannot think straight. I have been working on this problem for two days (screaming)....<BR>\n" );
document.write( "11.)The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certificate of deposit) is given by\r<BR>\n" );
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document.write( "A = P(1+r/n)^nt <BR>\n" );
document.write( "A is the amount of the return.<BR>\n" );
document.write( "P is the principal amount initially deposited.<BR>\n" );
document.write( "r is the annual interest rate (expressed as a decimal).<BR>\n" );
document.write( "n is the number of compound periods in one year.<BR>\n" );
document.write( "t is the number of years. <BR>\n" );
document.write( "Carry all calculations to six decimals on each intermediate step, then round the final answer to the nearest cent. <BR>\n" );
document.write( "Suppose you deposit $2,000 for 5 years at a rate of 8%. <BR>\n" );
document.write( "a)Calculate the return (A) if the bank compounds annually (n = 1). Round your answer to the hundredth's place. \r<BR>\n" );
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document.write( "b)Calculate the return (A) if the bank compounds quarterly (n = 4). Round your answer to the hundredth's place. \r<BR>\n" );
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document.write( "c)Does compounding annually or quarterly yield more interest? Explain why. \r<BR>\n" );
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document.write( "d)If a bank compounds continuously, then the formula used is A=Pe^rt<BR>\n" );
document.write( "where e is a constant and equals approximately 2.7183.<BR>\n" );
document.write( "Calculate A with continuous compounding. Round your answer to the hundredth's place. \r<BR>\n" );
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document.write( "e)A commonly asked question is, How long will it take to double my money? At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place. <BR>\n" );
document.write( "I am totally lost with this. Can someone help me. S.O.S. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #67846 by </B><A HREF=/tutors/aboutme.mpl?userid=checkley75><B>checkley75(3666)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=checkley75><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=67846\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A=2000(1+.08/1)^1*5<BR>\n" );
document.write( "A=2000(1.08)^5<BR>\n" );
document.write( "A=2000*1.469<BR>\n" );
document.write( "A=$2,938.66 INTEREST FOR 5 YEARS PAID ANNUALLY.<BR>\n" );
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document.write( "A=2000(1+.08/4)^4*5<BR>\n" );
document.write( "A=200(1+.02)^20<BR>\n" );
document.write( "A=2000(1.02)^20<BR>\n" );
document.write( "A=2000*1.4859<BR>\n" );
document.write( "A=$2,971.89 INTEREST FOR 5 YEARS PAID QUARTERLY.<BR>\n" );
document.write( "QUARTERLY PAYMENTS ARE GREATER BECAUSE YOU ARE EARNING INTEREST ON INTEREST QUICKER. BY QUARTERS RATHER THAN BY YEAR.<BR>\n" );
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document.write( "ASSUMING YOU WANT A 5 YEAR INVESTMENT COMPOUNDED CONTINUOUSLY @ 8% THEN:<BR>\n" );
document.write( "A=2000*2.7183^.08*5<BR>\n" );
document.write( "A=5436.6^.4 CAN'T CONTINUE AS I HAVE RUN OUT OF STEAM HERE ON THE FRACTIONAL EXPONENT. SORRY.<BR>\n" );
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