document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1088938>Question 1088938</A>: <I><SPAN STYLE=\"word-break: break-all;\"> $3000 was invested:\r<BR>\n" );
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document.write( "Karen invests the money in a 3 year fixed term investment account paying 4.8% interest compounding quarterly. She withdraws her money after 3 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #703252 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=703252\">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( "time period could be years, months, days, weeks.<BR>\n" );
document.write( "it's the time period that the interest that you earn is compounded.\r<BR>\n" );
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document.write( "rate = annual rate divided by compounding periods per year.<BR>\n" );
document.write( "n = the number of years times the compounding periods per year.\r<BR>\n" );
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document.write( "rate = rate percent divided by 100.\r<BR>\n" );
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document.write( "in your problem.\r<BR>\n" );
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document.write( "p = 3000<BR>\n" );
document.write( "f = what you want to find.<BR>\n" );
document.write( "r = 4.8% / 4 / 100 = .012 per quarter<BR>\n" );
document.write( "n = 3 * 4 = 12 quarters\r<BR>\n" );
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document.write( "the formula becomes:\r<BR>\n" );
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document.write( "f = 3000 * (1 + .012) ^ 12 = 3461.683873\r<BR>\n" );
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document.write( "use a time value calculator and you'll get the same thing.\r<BR>\n" );
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document.write( "one such calculator can be found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "you enter:\r<BR>\n" );
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document.write( "present value = 3000<BR>\n" );
document.write( "future value = 0 or blank<BR>\n" );
document.write( "number of periods = 3 * 4 = 12<BR>\n" );
document.write( "payment amount = 0<BR>\n" );
document.write( "interest rate per time period % = 4.8 / 4 = 1.2<BR>\n" );
document.write( "payment at end\r<BR>\n" );
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document.write( "you make your entries and then select FV and the calculator tells you what the future value is.\r<BR>\n" );
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document.write( "it will tell you that the future value is -3461.68.\r<BR>\n" );
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document.write( "this agrees with what i calculated above.\r<BR>\n" );
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document.write( "note that the calculator uses rate percent rather than rate.<BR>\n" );
document.write( "this means 4.8/4 instead of 4.8 / 400<BR>\n" );
document.write( "note that future value will show up as negative since present value was entered as positive.\r<BR>\n" );
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document.write( "i would have shown you a picture but my website is down at this time.\r<BR>\n" );
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document.write( "you can do the calculations yourself and see what i mean.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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