document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1080926>Question 1080926</A>: <I><SPAN STYLE=\"word-break: break-all;\"> how much must you deposit in an account that pays 8% interest,  compounded monthly,  to have a balance of $1000  after three years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #695023 by </B><A HREF=/tutors/aboutme.mpl?userid=Alan3354><B>Alan3354(69443)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Alan3354><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=Alan3354><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=695023\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> how much must you deposit in an account that pays 8% interest,  compounded monthly,  to have a balance of $1000  after three years<BR>\n" );
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document.write( "FV = Future value<BR>\n" );
document.write( "PV = Present value<BR>\n" );
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document.write( "3 years = 36 months, the compounding period.<BR>\n" );
document.write( "8% per year = 8/12 % per month<BR>\n" );
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document.write( "FV = PV*(1 + 0.08/12)^(3*12)<BR>\n" );
document.write( "1000 = PV*1.00666667^36<BR>\n" );
document.write( "PV = 1000/(1.00666667^36)<BR>\n" );
document.write( "PV =~ $787.25<BR>\n" );
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document.write( "Sounds like a bad deal.<BR>\n" );
document.write( "OK, not a bad deal, just a waste of time.<BR>\n" );
document.write( "$213 would last about 3 minutes at the free clinic. </SPAN>\n" );
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