document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1080897>Question 1080897</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Your aunt is planning to invest in a bank CD that will pay 5.50 percent interest semi-annually. If she has $7,000 to invest, how much will she have at the end of four years? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.)  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #694979 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=694979\">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( "your time periods are in half years.\r<BR>\n" );
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document.write( "4 years is equal to 8 half years.\r<BR>\n" );
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document.write( "interest rate of 5.5 percent per year is equal to 2.75% per half year time period.\r<BR>\n" );
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document.write( "2.75% is equal to .0275\r<BR>\n" );
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document.write( "you divide percent by 100 to get decimal equivalent.\r<BR>\n" );
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document.write( "formula of f = p * (1+r) ^ n becomes:\r<BR>\n" );
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document.write( "f = 7000 * (1.0275) ^ 8\r<BR>\n" );
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document.write( "at the end of 4 years, she will have 8696.6639 rounded to 4 decimal places which you round to 8696.67 if you want it to the nearest penny.\r<BR>\n" );
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