document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1067659>Question 1067659</A>: <I><SPAN STYLE=\"word-break: break-all;\">  Your investment of $1,200 gets 5.1% and is compounded semi annually for 7 1/2 years. What will your $1,200 be worth at the end of the term </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #682767 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=682767\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "5.1% compounded semi-annually becomes 5.1/2 = 2.55% semi-annually.\r<BR>\n" );
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document.write( "that's the interest rate percent.\r<BR>\n" );
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document.write( "the interest rate per 6 month time period is .0255.\r<BR>\n" );
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document.write( "p = 1200\r<BR>\n" );
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document.write( "n = 7.5 years * 2 time periods per year = 15 semi-annual periods of 6 month each.\r<BR>\n" );
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document.write( "your formula becomes:\r<BR>\n" );
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document.write( "f = 1200 * (1.0255) ^ 15\r<BR>\n" );
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document.write( "solve for f to get f = 1750.718079.\r<BR>\n" );
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document.write( "that's how much money you'll have at the end of the 7 and 1/2 years.\r<BR>\n" );
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document.write( "to find the interest rate per time period, you divide the annual interest rate by the number of time periods per year, in this case 2.<BR>\n" );
document.write( "5.1% / 2 = 2.55% / 100 = .0255.\r<BR>\n" );
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document.write( "to find the number of time periods, you multiply the number of years by the number of time periods per year, in this case 2.<BR>\n" );
document.write( "7.5 * 2 = 15\r<BR>\n" );
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document.write( " </SPAN>\n" );
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